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News From Audio Graphics:
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Internet Radio Industry to SoundExchange... |
Being ignored is something that will send anyone's pulse racing. Being ignored while the entity that's the ignorant (yes, I've just made up a noun) claims to be reaching out to you is infuriating. Give me ninety seconds for an explanation and you'll see the point quickly.
The internet radio industry has been in this battle about royalty rates for years, though it's only come to a head since the Copyright Royalty Board announced new, extremely high royalty payments in March, 2007. Since then, we've seen a continued blasting of press releases from the record labels' stringed puppet, SoundExchange, claiming to reach out to internet radio stations. The topics in each release were that SoundExchange wanted to provide a fair fee for webcasters, and that it was doing everything it could to facilitate this negotiative process. SoundExchange claims, continually, that it does not want to destroy an industry, but wants to make sure that artists receive fair compensation for music used to program these online stations.
Sounds simple enough. Negotiations are ongoing, if you believe what is published by SoundExchange.
Well, let's clarify this issue - about ongoing negotiations - because there seems to be a significant mis-representation on what is being issued in these press releases if you weigh it against reality.
With the exception of a few major players in the world of internet radio, there has been very little contact between SoundExchange (the ignorant) and those who are being ignored (the webcasters).
Behind the scenes there is a group of prominent webcasters, from small to large, who carry on an email exchange of information. Let me quote one well respected internet radio owner, who will remain nameless: "One thing we do know is true is that NONE of us, to our knowledge, have been directly contacted by SX or their representatives..."
This isn't about a few small business people complaining. It's about a facade being perpetrated by SoundExchange, to make it appear that it is attempting to keep negotiations alive so as to avoid further Congressional intervention. Already, 140 House Representatives have signed on to co-sponsor the "Internet Radio Equality Act." It's important for the ignorant to create the perception that it is in the process of negotiating, in order to prevent the number of Representatives who co-sponsor HR 2060 from reaching 218. That's the magic number that will get this Internet Radio Equality Act passed.
SoundExchange wants enormously high royalty rates passed because it knows that will drive thousands of online radio stations out of business. The fewer stations, the easier it is to control music online. So, by creating this impression that SoundExchange is busy doing deals, the hope is that Congress will be inflated with a feeling that it should let the industry work this issue out.
Here's where this stands:
Nothing is sealed. Nothing is on the table that is reasonable. Nothing has been offered to change those unreasonably high CRB royalty rates. And, most importantly, no contact is being made with the vast, vast majority of internet radio station owners - either by "reaching out" to them or in answering requests by them to negotiate.
To put this simply, the ignored are tired of the ignorant saying things that aren't true: That good faith negotiations are ongoing, that progress is being made, that webcasters are being offered below market valued royalty rates for songs they play (without acknowledging that these offers are wrapped in unacceptable conditions) are all points that don't exist, or are greatly exaggerated.
Congress goes on a month long break beginning August 1. Today, the House Judiciary Committee will hear testimony in a hearing titled "Hearing on Ensuring Artists Fair Compensation: Updating the Performance Right and Platform Parity for the 21st Century."
While this may sound like a step in the right direction, it is just another delay at getting this problem behind us. Nothing will be settled today. SoundExchange will continue to claim good faith negotiations are ongoing. Webcasters will argue that this isn't true.
The Committee will hear from both sides, then adjourn and forget.
Now that terrestrial radio station owners are being pressed for the same unreasonably high royalty rates being forced on internet radio stations, we may begin to see more in the press about this. But until the audience begins to yell a little louder, until journalists stop reprinting SoundExchange press releases nearly verbatim, until artists stop insisting that radio airplay has little to do with the promotion (and sales) of their songs, this issue is going to continue and lanquish in hyperboly.
The ignored are getting tired of trying to settle. The ignorant are persistently ignoring requests to bring rates down to a fiscally responsbile level that allows the internet radio industry to grow.
It's an irresponsible way to build the future and, unless this gets addressed by legislation, this whole mess is going to end up with uninformed consumers facing far fewer choices - choices that will be controlled by the major record labels.
In this case, ignorance is not bliss. It's disasterous.
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