From RBR: "The NAB [National Association of Broadcasters], representing radio broadcasters, has so far been silent on the new, exorbitant Internet streaming royalty fees [RAIN coverage here, here, and here]. We were told this is due to staffers being... at the proposed XM/Sirius merger hearing yesterday [see coverage in today's issue]...

"Broadcasters we spoke to, like Entercom's David Field, mentioned they were still analyzing the new fees and deciding where to go with their streaming audio...

"WBEB-FM Philadelphia's Jerry Lee [pictured left] told us... 'It sounds pretty bad. My take is if it isn't changed, at least the people that are webcasters are not going to be around. It sounds  horrendous.'

"Said Bonneville CEO Bruce Reese [at right]... 'I just don't think this decision has anything to [do with] the reality of what's good business for the record industry, the artists or for us. I don't think this does anybody good... This is going to be a good business for us in the future and we need to be in this space...'

"RBR observation: Let's say these fees stick and anybody and everybody who streams audio pulls their streams. Wouldn't that actually be good for traditional radio, as it would send audio advertisers back that had been spending in Internet radio? Radio stations could cut their streams and still have their cash cow terrestrial signals — no biggie. The issue has actually been discussed at NAB board meetings — if streaming royalty fees are hiked up as much as possible, online radio competition for ad dollars would fall back to a minimum...

"In the end, Congress can do just about anything— expect an amendment to these new fees...

"These new Internet royalty fees have to be stopped. NAB, get a dog in this fight and quick, as not all NAB staffers have to sit at a hearing watching Karmazin.

Read Net Radio Sales president Jennifer Lane's "call to action" to broadcasters on webcast royalties in today's issue here.

From today's issue of RBR, by Jennifer Lane: "The recent decision issued by the Copyright  Royalty Board (CRB) with regard to performance royalties to be paid by online radio stations for the next five years is a call to action for the broadcasting industry.

"Given the fact that over 50 million Americans now listen to online radio each month, one can assume that the recording industry does not want online radio to disappear...

"Given that this decision did not achieve a middle ground that both parties can live with, three possible paths remain.

"First, there can be appeals to the decision. There were several parties to the CRB proceedings, and any of them can appeal the decision. Initial reviews say that there are grounds for this on a legal basis.

"Second, and concurrently, both sides can negotiate a settlement that works...

"Thirdly, many webcasters believe that the true issue lies in a faulty law (the DMCA) — so the Internet radio industry needs to work to remedy this situation by getting the legislation amended. One would hope at this point to see the NAB, who  has previously taken little interest in streaming radio, make this a priority...

"Realizing [Net radio's] potential, broadcasters have begun streaming their content online and are not going to easily cede this distribution channel. Broadcasters should let NAB know that this is an important issue that must be resolved.

"One thing all these stations have going for them is their listeners — listeners who are passionate about their favorite webcasts and do not want to lose them. Stations can make their listeners aware of the issues using a resource such as www.savethestreams.org."

Read the entire article in RBR here.

Jennifer Lane is President of Net Radio Sales.