Net Radio's Day of Silence

Yesterday thousands of U.S. based webcasters -- including Yahoo Music, MTV Radio, Live 365, Pandora and Rhapsody -- participated in a day of silence to protest an impending royalty rate increase that, if put into effect, would end many of our countries internet radio stations.

Currently most U.S. webcasters pay 12% of profit back to the artists and labels they play, on top of a annual fee. On July 15, however, new and retroactive per-song royalty rates will go into effect which will increase costs dramatically.

A guy going by the name Cinematic Razor Sharp says on his MySpace Blog that these new royalty rates are way off base:

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!

Webcasters who participated in the day of silence are urging listeners to get involved politically. Jerry del Colliano of Inside Music Media:

The plight of the large and small Internet streamer may get worse before it gets better. Activists are right to target Congress because only lawmakers can save the most exciting growth industry to hit music media since -- well, radio.

Therefore, I favor any approach that targets Congress. You make the non-supporters of fair royalty rates pay by not supporting them. This takes mobilization that can only happen through that great political tool called the Internet.

This is exactly how our representative form of government works. The great majority of Americans support this growing segment of music media. Congress should enable the ability of these folks to enjoy music entertainment online and allow entrepreneurial businesses to prosper simultaneously.

Anyone looking to get involved can go to www.SaveNetRadio.org where there are convenient ways to contact your representatives as well as news and information.

-Dippold

Political Online Reputation