Re: ADIOS, INTERNET RADIO

From: Eric Kitel (eric@ayalounge.com)
Date: Wed Apr 03 2002 - 14:16:32 CEST

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    obviously the real reason for this is that they don't want people to be exposed to styles of music that cannot be mass produced by the big domestic labels, as this might take away a small percentage of their sales.... regular, average, people will like real good music if given half a chance, and as a DJ I've seen it happen many times. This decision is aimed at keeping these people in ignorance in order not to jeapordize a small yet substantial portion of their profits from selling pre-fab pop crap and psuedo alternatives to people who just don't know any better, and don't have time to research real alternatives, (why do you think people have bought so many Sting albums over the years, it's all crap but as far as most people know it's one of the few sophisticated/intellectual/mature jazz-influenced alternatives out there, just give them a good selection of Compost compilations and they'll forget old Sting in a heartbeat) net radio was threatening to make it easier for the masses to find real alternatives, so better to smash it now, right? What a twisted Orwellian world we live in, only difference is it's Big Business, instead of Big Brother trying to control your mind.

    ----- Original Message -----
      From: Mel Jones
      To: Acid-Jazz
      Sent: Wednesday, April 03, 2002 1:41 AM
      Subject: ADIOS, INTERNET RADIO

      Hey just in case I thought I would pass along this info.

      Mel

      -- By Chris Gonsalves --

      I'm a fan of Stardog, personally. Maybe you like CelticGrove
      or BlueCityJazz. Doesn't matter. In a few weeks, listening
      to music on Internet radio will be dead as a mackerel.

      Shame really. The Internet radio business has been growing
      at something like 100 percent annually and is thriving in
      genres underrepresented on FM stations, such as classical,
      blues, jazz and gospel. Doesn't matter. The government,
      acting once again in the special interest of the music
      industry, is about to crush the idea.

      In the latest example of groundless regulation and greed
      interfering with free commerce, the U.S. Copyright Office is
      considering a proposal that would force Internet radio
      stations to pay exorbitant royalties to record companies and
      performers, something their over-the-air counterparts are
      not required to do.

      Where AM and FM radio stations pay a small fee to music
      composers, Internet radio stations are facing fees of up to
      14 cents per listener per song. That fee would bankrupt
      nearly all of the Web broadcasters operating today,
      according to the group saveinternetradio.org.

      Copyright officials have until May 21 to make the call, but
      considering that the recommended shakedown came from the
      advisory group they created--the Copyright Arbitration
      Royalty Panel (CARP for short)--it's clear the rubber stamp
      is warmed up and waiting.

      How did we get to this point? Even if you thought Napster
      and others of their ilk were the bad guys, how did Internet
      radio become to the target of the Harry Fox crowd? It began
      in October 1998, when Congress passed the "Digital
      Millennium Copyright Act" (DMCA), which gave record
      companies the green light to collect royalties when music
      was played via "digital media" such as Internet radio.

      It's an interesting departure from a music industry
      standpoint. Record companies and performers don't get
      royalties from AM and FM radio play because the copyright
      folks consider the promotional value of the airplay payment
      enough. So why the switch for the Internet? The theory
      bought by Congress is that Internet listeners can make
      "perfect copies" of the songs being streamed, and those
      copies could hurt CD sales. That would be a good argument,
      except that, as anyone who listens to Internet Radio knows,
      you can't make "perfect copies." You can't easily make
      copies at all. And if you can, they are of too low a sound
      quality to be useful in creating your own CDs. What you get
      sounds pretty much like those cassette tapes you used to
      make off the FM radio. Not great.

      Never ones to let facts stand in their way, the solons
      assigned to the CARP published their recommended royalty
      schedule in late February. As the basis for the outrageous
      fee schedule, the CARP report cites a $5 billion deal
      between Yahoo! and Broadcast.com. The result was a figure
      that would leave most Internet broadcasters, who have
      attracted precious little advertising, liable for between
      200 and 300 percent of their gross revenues. And, oh, by the
      way, the fees are retroactive to October 1998. According to
      Internet radio industry figures, a midsize independent
      Webcaster with an average audience of 1,000 would owe
      $525,600.

      See you later Stardog. It was nice knowing you.

      To e-mail eWEEK Deputy News Editor Chris Gonsalves,
      click here:
      mailto:chris_gonsalves@ziffdavis.com



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