March 20, 2007
R.I.A.A. to Net DJs: F*ck You, Pay Me
Testify: The R.I.A.A. rules everything around us.
Earlier this month, the Copyright Royalty Board (comprised of the three fine gentlemen above) reached a landmark decision about the increased royalty rates that streaming internet radio stations would have to pay. Yesterday, various folks that would be effected by the decision, like NPR and Clear Channel, appealed to the board to reconsider its decision. It ain’t looking good.
The board released a 115 page summary of the original verdict, but the message is clear: internet radio is f*cked.
Under the decision, ALL internet stations now have to pay $500 “per channel”. That includes all you bedroom DJs. To contrast, LATimes reports that Live365.com, a popular streaming radio site, charges its DJs $9.95 to have their own channel.
Under the old system, small stations could pay 10 percent of their revenue for royalty rates. Under the new system, some stations are reporting that they owe about 300 times their TOTAL revenue.
Traditional radio stations and internet stations have both always had to pay composers fees, which publishing firms like ASCAP and BMI make sure get into the hands of the songwriters. But for some reason, internet stations have to pay an additional “performance fee,” which is calculated not just by how often you play the song, but by how many people are listening. That performance fee goes to (you guessed it) the R.I.A.A.. They must be psyched that they can finally cash in on radio after years of those damned “songwriters” getting all the royalties.
As it turns out, the R.I.A.A. is actually behind this entire sinister decision. A group called “SoundExchange” is responsible for proposing the royalty rates that have now been sancioned by the court. As it turns out, SoundExchange is actually just a non-profit group set up by the R.I.A.A.
It doesn’t take a panel of judges to see that this is just a thinly veiled way for the record conglomerates to get money from a previously off-limits source (radio) while keeping small and public radio stations from competing. Even traditional stations, like the ones owned by Clear Channel, could have a very difficult time competing in this new format. If this decision sticks, the overwhelming majority of online station will immediatly die, while stations like AOL (owned by TimeWarner, the parent company of the WMG) can monopolize this new market, thus deciding what music you’re allowed to hear.
The Broadcast Law Blog has a lot of good info on the controversy.
UPDATE: Due to the outpouring of criticism, they’ve granted a new hearing on the subject on April 2.
More Producer/DJ/industry-related news:
Bjork discusses the seven songs she recorded with Timbaland on her new album.
Murda Muzik: The trial of rock producer Phil Spector begins.
Green Lantern talks his new radio show, DJ Drama and Uncle Murder. Holler at NahRight to hear his new mixtape.
Kanye rocks a high school pep rally.
Producer marketplace Givemebeats.com is now open for business.
A new hypocritical twist in the Viacom vs. YouTube case.
The Core DJs retreat wraps up.
Stax Records turns 50.
4 Responses to "R.I.A.A. to Net DJs: F*ck You, Pay Me"
Mar.20 at 2:36 pm
Renny says:
They also sent a similar message to artists. The RIAA is trying to lower artist royalties. Let’s hope this doesn’t work. - Renny
Mar.20 at 6:14 pm
fontgangsta says:
that’s fucked the fuck up
Mar.26 at 1:36 pm
Jesse says:
RIAA? Better get with the digital age, you are not neccesary. myspace.com/jessecastrojr
Mar.27 at 2:11 pm
TreyPeezy.com says:
WOW! That wild
Comments