From MTV News: "If you tuned in to your favorite Internet
radio station Wednesday, what you didn't hear could be the
future sound of online radio, many webcasters say.
"Hundreds of online radio stations protested a recently
proposed royalty rate by going dark Wednesday for an Internet radio
'Day of Silence.' Some stations halted their broadcasts all
day, while others only stayed silent for a 12-hour period. Many
of those that did not go dark aired a 12-hour talk show informing
listeners about the new rate plan...
"When users visited Web sitesof stations participating
in the protest, they were met with an explanation of the shutdown
and directed to the Radio And Internet Newsletter's Save
Internet Radio page.
"As an indication of how widespread outrage over of
the silence was, the site, which had approximately 90,000 page views
prior to May 1, had more than tripled its traffic to 286,000
as of Thursday afternoon, according to a site spokesperson."
(Pictured at right.) "The Web site's server crashed twice Wednesday
as a result of the traffic, the spokesperson said.
"Additionally, more than 22,000 faxes
were sent to members of Congress via Lightningcast,
an ad-insertion technology
company that volunteered its services to the cause by enabling visitors
to its own site to voice their opinion via a form letter.
"Congress.org, a Web site that assists users in writing
their congressional representatives, had sent approximately
4,700-4,800 e-mails and hand-delivered
letters about the issue to Capitol Hill, according to
a site spokesperson, who added that the Internet radio debate was
the most popular issue they've had apart from topics surrounding
the Middle East.
By comparison, the site usually sends 1,500-2,000 letters per day
on all of their available topics.
"'This highlights how average citizens, who are passionate
about an issue, can harness the power of the Internet to take action
and effect change,' said Bob Hansan, president of Capitol Advantage,
the company that powers Congress.org..."
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From SoundExchange on Wednesday: "You may have heard
that some webcasters are participating
today in a so-called 'Day of Silence.' This is their way of protesting
their obligation to compensate artists and record companies
for their music. While the purpose of this protest is misguided,
a 'day of silence' is a fitting theme.
"Everyone should understand what the world would sound
like without the music that is often taken for granted. If those
who make the music we all love are not fairly compensated for their
work, that will be the result silence.
"Lets not forget that what the music webcasters want
essentially for free is the
backbone of their entire business. Somehow these companies have
found a way to pay fair market rates
for everything else necessary for their business from bandwidth
and computers to rent and furniture. Why should the most important
element of their business the music be any different?
"Artists and record companies deserve fair
compensation for their creations. They have waited patiently
for more than
three years to be compensated while webcasters have been building
their businesses. Webcasters are not entitled to a
free ride or subsidy. The time has come for webcasters
to stop protesting and work cooperatively with artists and record
labels to ensure success for all and provide fans with the great
music they expect and deserve."
Pictured here, left to right, is Hilary
Rosen of the RIAA, Simson , Ann
Chaitovitz of AFTRA, and Linda
Bocchi of AARC (Alliance of Artists and Recording Companies).
Rosen and Chaitovitz also signed the SoundExchange letter.
This complete open letter from SoundExchange executive director
John Simson, and signed by various artists, record labels, and other
industry groups, is available in Adobe Acrobat format here.
...
... There are numerous points here with which I have trouble
-- and I'm sure many RAIN readers could bring up the
same issues.
But the one that sticks out the most to me is the idea
that webcasters are looking for "a
free ride or subsidy." Thinking like this completely
disregards the fact that radio (terrestrial and Internet) play
is a historically proven and effective promotional tool that
drives record sales.
The very fact that the RIAA was instrumental in convincing
Congress to include the "sound recording performance complement"
in the DMCA, which among other things mandates that webcasters
include functionality enabling listeners to purchase sound recordings,
demonstrates that record labels acknowledge the promotional
power of "public performance." Oh yeah, there's the
hundreds of millions of dollars spent every year on radio promotion
(which, by the way, is charged back against the artists' advances).
Hmmm...who's subsidizing who?
If the record industry's positioning of itself as the
champion of artists' rights
near and wide isn't mind-boggling enough, note that the third
signatory to this letter after Simson is Don
Henley himself (right, with Eagle bandmate Glenn
Frey), whose war against the industry which has made him an
"indentured servant" (his words) has been well-publicized.
In fact, in his testimony (here)
that the record industry severely dropped the ball in dealing
with the realities of technology and the Internet -- and his
concern that artists would go uncompensated as the major labels
developed their own music subscription services (which is exactly
what several artists allege), he said, "The RIAA does not
speak on behalf of recording artists, even though it gives the
impression at times that it does." -- PM
The press coverage of Wednesday's media event
continues. As of Thursday afternoon, we're still coming across
more articles and features in America's newspapers, websites, and
magazines -- and attentive RAIN readers have been pointing
out still more.
Plus, we know of several folks in the industry are still
being contacted by journalists about the "Day of Silence,"
so we imagine the media isn't finished yet!
We'll continue toupdate this table
as we hear of more stories. (If you know of press coverage that
we're missing, feel free to drop a line to us at kurt@kurthanson.com
or using the feedback form below.
From Radio Ink: "Kevin Barrett, Program Director at
KABZ FM 'The Buzz'
in Little Rock told Radio Ink in an e-mail, 'Today
103-7 The Buzz observed Internet radio streaming silence, even though
as an FM Talk Station we are not directly affected as are our colleagues
at broadcast music stations, and Internet only webcasters.
"'The RIAA is one of the most powerful lobbies in America,
no doubt their goal is for the major record companies to control
music on demand portals on the Internet. If it stands, the
proposed regulations will in effect hurt the people who are championing
the very bands and artists that rarely see the light of day on commercial
radio,' Barrett said. 'By erecting this mammoth toll
gate for web radio streamers, they will terminate the last staging
area left for experimentation, consumer choice, & just possibly
the next great format concept.'"
From a WarpRadio press release: "WarpRadio.com
, a leading global provider of streaming radio services to
over 200 stations on the Internet, announced today that it has signed
its largest single agreement for ad sales in more than two years.
This initial order validates the inherent value of audio online advertising...
"This initial agreement is witheTelcharge.com,
an alternative payment company, which allows consumers to charge transactions
using the eTelcharge
system and then have the transaction added to your monthly phone bill.
WarpRadio is currently undergoing Chapter 11 reorganization.
Read this complete press release here.