SaveNetRadio coalition

Posted on May 10, 2007. Filed under: Social Media |

The SaveNetRadio coalition is made up of artists, labels, listeners,
and webcasters. Please contact us if you are interested in sponsoring
an event, making a donation, or would like to become a leader in the
fight to save Internet radio. The recent ruling by the Copyright
Royalty Board to increase webcasters’ royalty rates between 300 and
1200 percent over the next 5 years jeopardizes the industry and
threatens to homogenize Internet radio.

Artists,
listeners, and Webcasters, have joined our coalition to help save
Internet radio. The coalition believes strongly in compensating
artists, but Internet radio as we know it will not survive under the
new royalties. We need your help. Please take a moment to call your members of Congress
to let your representatives know how much Internet radio means to you.
Together, we can force Congress to create a structural solution for
this problem and create an environment where Internet radio, and the
millions of artists it features, can continue to grow for generations
to come.

About the Issue

On
March 2, 2007 the Copyright Royalty Board (CRB), which oversees sound
recording royalties paid by Internet radio services, increased Internet
radio’s royalty burden between 300 and 1200 percent and thereby
jeopardized the industry’s future.   

At the request of
the Recording Industry Association of America, the CRB ignored the fact
that Internet radio royalties were already double what satellite radio
pays, and multiplied the royalties even further.  The 2005 royalty rate
was 7/100 of a penny per song streamed; the 2010 rate will be 19/100 of
a penny per song streamed.  And for small webcasters that were able to
calculate royalties as a percentage of revenue in 2005 – that option
was quashed by the CRB, so small webcasters’ royalties will grow
exponentially!

Before this ruling was handed down, the
vast majority of webcasters were barely making ends meet as Internet
radio advertising revenue is just beginning to develop.  Without a
doubt most Internet radio services will go bankrupt and cease
webcasting if this royalty rate is not reversed by the Congress, and
webcasters’ demise will mean a great loss of creative and diverse
radio.  Surviving webcasters will need sweetheart licenses that major
record labels will be only too happy to offer, so long as the webcaster
permits the major label to control the programming and playlist.  Is
that the Internet radio you care to hear?  

As you know,
the wonderful diversity of Internet radio is enjoyed by tens of
millions of Americans and provides promotional and royalty
opportunities to independent labels and artists that are not available
to them on broadcast radio.  What you may not know is that in just the
last year Internet radio listening jumped dramatically, from 45 million
listeners per month to 72 million listeners each month.  Internet radio
is already popular and it is already benefiting thousands of artists
who are finding new fans online every day.

Action must be
taken to stop this faulty ruling from destroying the future of Internet
radio that so many millions of listeners depend on each day.  Instead
of relying on lawyers filing appeals in the CRB and the courts, the
SaveNetRadio Coalition has been formed to represent every webcaster,
every Net Radio listener, and every artist who enjoys and benefits from
this medium.  Please join our fight for the preservation of Internet
radio.

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