Internet Radio Stations Protest Unfair Royalty Fees With ‘Day of Silence’
Beginning yesterday at 9 p.m. PT and continuing for the following day, Yahoo is pulling all music off of Launchcast, the web’s #1 radio service, as part of an internet radio “Day of Silence.” Joining Yahoo! Music in the effort are Pandora, MTV, Real/Rhapsody, KCRW.com, and many others.
The purpose of the Internet Radio Day of Silence is to protest and draw attention to new royalty fees set by the Copyright Royalty Board which will be imposed on web broadcasters beginning July 15th. The rates will be raised from 300% to 1,200% depending on the size of the broadcaster and will effectively shut down the internet radio business if implemented. Not only are the fees retroactive to the beginning of 2006, but an additional $500 a year per each broadcast “channel” will be instituted, costing the internet radio business $1.15 BILLION.
SoundExchange, an intermediary group set up by record labels to collect royalties, insists that rates are fair and necessary to ensure artists are compensated adequately. However, while internet broadcasters will be on the hook for more than 100% of their profits, satellite radio broadcasters only pay the music industry 7% of total revenue and terrestrial radio pays 0%.
Yahoo! Music has taken an aggressive stance in fighting the arbitrary rates and keeping internet radio alive. To begin, through the Digital Media Association (DiMA), the national trade organization devoted to the online audio industry, we have filed an emergency stay of the ruling with the US Court of Appeals. The Internet Radio Equality Act, a bipartisan bill of 120 sponsors in making its way through Congress and would bring the royalty rates in line with those of the satellite radio industry.
But they still need your help and time is of the essence. If you listen to internet radio, are a music fan or a supporter of radio diversity, please do your part to help. Go to www.savenetradio.org and call your Congressional representative to lend your support.
Today is only one day of silence — but if you don’t speak up, this could be the only sound we’ll hear from online radio.
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