RAIN: Radio And Internet Newsletter

June 27, 2007

Daily news and commentary on the key issues involving radio and the Internet

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CRB coverage 2007:
CRB decision
SaveTheStreams
Legal options
Markey
Petitions
Copyright law
Canada?
Fred Wilhelms [2] [3]
JPMorgan analyst
SaveNetRadio
Rehearing denied
SNR.org website
B'casters interests
Day of Silence?
What is "fair"?
House IREA
SX Point/Counter
July 15th D-Day
Hill walk recap
Senate IREA
Hanson/Simson
Offer to SCW
Berman/Coble
100th co-sponsor
File for stay
Noncomm offer
$1 bil admin cost

CRB coverage 2002:
CARP decision
Industry reacts
Industry stunned
Huge RIAA win
SJO editorial
Day of Silence?
Congress support
Day of Silence on!
Press coverage
Day of Silence
Librarian decision
Cuban speaks up
Labels: Die Now!
Forbes coverage
SWSA
SCW license

"The Future of
Radio" series
1 | 2 | 3 | 4 | 5

"Net radio frontier:
Ad sales" series
1 | 2 | 3 | 4 | 5

UPDATED:
Internet radio
royalty basics

Copyright Law
DMCA
CRB 2007
Webcast decision

x
We will be updating this page throughout the day with more "Day of Silence" and CRB news. Our afternoon edition will features a look at tomorrow's House subcommittee meeting on webcaster royalty rates here, and some great reader feedback here. Please check back throughout the day for more. -- DM
x

Headline: "'Day of Silence' draws massive press coverage"
BY DANIEL MCSWAIN and PAUL MALONEY
National and international mainstream press outlets devoted lots of air time and print space to yesterday's "Day of Silence" event, evidence that one of the day's goals — alerting listeners about the imminent threat faced by webcasters with the help of various media outlets — was immediately successful.

Below is a table of some of the major press coverage of yesterday's "Day of Silence". The table will be updated as more coverage of the event is published.

	Internet Radio Outlets Protest Royalties
	Online Music Hushes in Face of Money Fight: Federal Discord Over Royalty Hikes
	Internet radio stations to protest royalty hikes - They will replace music with silence today to fight royalty rate hikes
	Online Music Goes Silent to Weigh In
	'Day of Silence' Makes Noise on the 'Net
	'Day of silence' for US web radio
	Day of Silence: Internet Radio Goes Dark
	Day of silence for Net broadcasters ACTION TO PROTEST SONG FEES STATIONS SAY COULD SHUT THEM DOWN
	Webcasters let it all go silent to protest growth in royalties
	A kind of hush all over Web radio
	Web radio stations plan day of silence to protest fees
	Protest will silence some online music - Participants upset about plan to increase fees to recording companies, musicians
	Webcasters silence radios in protest
	Net radio battles royalty ruling with silence
	Internet radio 'silence' protests royalties hike
	Radio Free Internet: Broadcasters Protest Rate Hikes With Silence
	Web radio sites go silent in protest New licensing fees could doom Internet radio, but webcasters are fighting back with a 'Day of Silence'
	Web Radio's 'Day of Silence' Protests Royalty Increases
	SoundExchange Reacts To 'Day Of Silence'
	Net Radio Protests Rates: Webcasters see a groundswell of support from net radio supporters on “Day of Silence”
	Webcasters Observe 'Day of Silence' to Protest Royalty Rates
	Online radio outlets plan silent protest
	Internet Radio Observes Day Of Silent Protest
	If You Like Online Radio, Call Your Congresspeople -- Seriously
	Web Radio Stations Hope Silence Speaks Volumes About Fee Hike
	Is Silence Golden?

RAIN is brought to you today by:

Interep's 2007 Radio Symposium will gather experts from across radio industries to address new platforms and provide updates on technologies affecting radio in the new century - HD Radio, Internet, and satellite radio, update on Arbitron's Portable People Meter - as well as emphasis on content & programming and industry mergers & acquisitions.

The symposium will take place on June 28, 2007 at Bear Stearns Headquarters in New York City, where the event will be hosted by Senior Broadcast Reasearch Analyst Victor Miller. Visit www.radiosymposium.com to read more about the the symposium agenda and sign up to be a part of this important event.

Headline: "Webcasters, artists, recording industry allies to testify tomorrow"

BY DANIEL MCSWAIN
Tomorrow, webcasters, artists and record industry execs will stand before the House Committee on Small Business as expert witnesses in the first hearing regarding the

new CRB rates and their effect on the webcasting industry since the introduction of the Internet Radio Equality Act in April.

The hearing, entitled "Assessing the Impact of the Copyright Royalty Board Decision to Increase Royalty Rates on Recording Artists and Webcasters", will also include testimony from Tommy Boy Records Chairman and SoundExchange board member Tom Silverman, AFM President Thomas F. Lee.

Given the impact of the CRB royalty rates on webcasting small businesses, the Small Business Committee could be a key ally in pushing the legislation. Currently, 12 Representatives who have co-sponsored H.R. 2060 sit on the Small Business Committee.

The table below lists the participants in tomorrow's hearing, divided into columns by witnesses who will be testifying against the CRB rate hike (left) and in defense of the new rates (right):

Bryan Miller La La Media, Inc. & WOXY Palo Alto, CA	Tom Silverman Chairman Tommy Boy Records New York, NY
Joey Allcorn Artist Columbus, GA	Cathy Fink Artist Washington, DC
Kieran Kelly Co-Owner Stunning Models on Display Records Astoria, NY	Thomas F. Lee President American Federation of Musicians New York, NY
Richard Eisworth President, General Manager & CEO Cincinnati Public Radio Cincinnati, OH

On another IREA-related note, Rep. Jay Inslee (D-WA), one of the original sponsors of H.R. 2060, stood in front of the House yesterday to alert Congress that millions of people are in danger of losing Internet radio unless swift action is taken to push the Internet Radio Equality Act into law.

Watch the clip on the embedded YouTube video player below:

We'll send you a brief daily summary of each day's stories with a clickable link to the RAIN home page.
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Headline: "Webcasters thank listeners for Day of Silence support"
Yesterday and today, several Day of Silence participants posted special messages to their listeners -- as an explanation for the lack of regular programming and a request to contact government representatives, and/or a message of thanks for understanding and support. Several webcasters added links to the ongoing press coverage of the Day of Silence event.

We felt RAIN readers might be interested in how some webcasters addressed their listeners about the Day of Silence.

From Ian C. Rogers at Yahoo!Music:
Yahoo! Music Goes Radio Silent
"Apologies to anyone who was hoping to listen to free LAUNCHcast today. We’re shutting down the Internet’s #1 radio

service for the day to draw attention to the outrageous rates recently set by the Copyright Royalty Board in Washington, D.C. We are doing so alongside thousands of webcasters including Pandora, MTV, Real/Rhapsody, WXPN.com, KCRW.com, and many many others...

"The situation webcasters are in is simple: the new royalty rates are more than the revenues anyone can hope to make from related advertising. In other words, we all lose money on Internet radio starting July 15th. Yahoo! has no intention of operating LAUNCHcast radio as a loss-leader. This senseless rate hike needs to be changed or our business will have to. And unfortunately the way we’d have to change our business would end up curtailing the great diversity that makes Internet radio uniquely compelling..."

Read Ian Rogers' entire blog here.

From Tim Westergren at Pandora:
Back online... !
"As of midnight we've turned Pandora back on. Once again the response from listeners today was just extraordinary.

You folks continue to amaze me. You brought down the server system for the country's most robust provider of online petitions (they said they've NEVER seen anything like it before)...

"It was also great to be part of such solidarity between webcasters of all shapes and sizes. The truth is that this is an industry started by music lovers and it shows...

"Webcasters want musicians to be compensated. For years we've even accepted the fact that we pay far higher rates than other forms of radio. What we want is a rate that properly remunerates artists, but also allows this medium to thrive. That is doable, and it's a win for everyone..."

Read Tim Westergren's entire blog post here.

From Bill Goldsmith at RadioParadise:
The Day of Silence is over but the fight is still on!
"Due to the huge numbers of Internet radio listeners who responded to this appeal, many of you were unable to get through to your Senators and Representative. If so, it's definitely not too late. Please contact your members of Congress now via SaveNetRadio.org and ask them to

support the legislation currently pending that would set an Internet radio royalty rate that is fair to all involved...

"Don't believe the record industry propaganda that says that Internet radio is trying to deprive artists and labels of fair royalty payments. Under the legislation we're supporting, we would still be paying a higher royalty rate than any other class of broadcaster in the US..."

Read Bill Goldsmith's message on the RadioParadise homepage here.

From N. Mark Lam and Live365:
Thanks again for making this day an important day in Internet radio history
"Thanks for playing such an important part in the Day of Silence! Live365, along with our friends

at Pandora, Yahoo!, Real Networks, KCRW, MTV, AccuRadio, and everyone at SaveNetRadio.org drove so many calls to Congress that their phones were inundated all day with internet radio fan's cries of support. We also came close to crashing the servers that provide congressional contact information!

"On top of overloading servers and phones with this tremendous response, the invaluable positive press coverage keeps flowing..."

Read Live365's message here.

From Ted Leibowitz at BAGeL Radio:
Internet Radio Day of Silence
"Today is the internet radio Day of Silence. BAGeL Radio will be running a series of Public Service announcements

about our plight, interspersed with BAGeL Radio band station IDs and jingles...

"We ask that you excuse the interruption of our normal programming, apologize to all of the bands who are not getting exposed to new ears today, and ask that you (listeners, readers, and musicians alike) take action to help ensure this silence is not made permanent in mid-July when the crushing new rates are scheduled to come due. Please call your Congressional Representatives today..."

Read Ted Leibowitz's blog post here.

RAIN (and our affiliate webcast AccuRadio) was proud to have stood in solidarity with the Internet radio industry in participating in yesterday's "Day of Silence". Congratulations to all of the webcasters that took part.

KPFA Radio (Berkeley, CA), Iceberg Radio (U.S. streams), KUSF (San Francisco, CA), BluegrassCountry.org/WAMU.org, KZSU (Stanford, CA), Sky.fm, WCPR Castle Point Radio (Hoboken, NJ), KPBX (Spokane, WA), WDYN (Rochester, NY), My Flex Radio, Christian Rock.net, Tundra Trash Radio, LastCall-Radio, Emphatic Radio, TwangTownUSA, Jesus Freaks Radio, Etherbeat, The Wolf Radio, ChronixRadio

Wizard Radio, Born Again Radio, Pearadio.com, Ear.fm, WGLI (Bablylon, NY), WMUK (Kalamazoo, MI), Head-On Radio Network, Zecom/Gemz Radio, monkeygrip music cafe, KFCF (Fresno, CA), LuckySevenRadio.com, Blue Power/Guitar Speak, WPNA (Oak Park, IL), WPRY (Perry, FL), 525 Power Tracks, Wild West Radio, Jazz Radio 24/7, RadioZX, InnerStreams Radio, WNYC2

WRPS/WebRadioPugetSound, Puregold Rock ‘N Roll, NeverEndingWonder Radio, RadioMilwaukee, Gotradio/100hitz, KDUN (Reedsport, OR), GDRadio.net, Pirate Radio KQLZ (Los Angeles, CA), KXPR/KXJZ (Sacramento, CA), NiceNoise.Net, BlackLight Radio, Pure Pop 24/7, Smooth Jazz and More, Reggae Nostalgia, WCH Radio/The Wave, WYGS Southern Gospel Radio Network, Bid4Spots

WRAJ Internet Radio, Big R Radio, Rock Nation Radio, Texas Broadcasting Network, WDAV (Davidson, NC), En Sound Radio, Sounds of America/This Is Your Music, Southern Christian Broadcast, The Roy Cost Show, Fresh FM (Canada), Stickman Radio, Jefferson Public Radio (Ashland, OR), WLUR (Lexington, VA), KRDE (Globe, AZ), 60’s Chicks Radio/Seasons & Celebrations Radio, STAR 107.9

Soft 'N Easy Net Radio, 181.fm, Classic Metal Show Radio Network, Whisperings: Solo Piano Radio, RadioJavan.com, Radio Bop, Prog Palace Radio, All About Country, RadioNC Online, PowerHitRadio, All Memphis Music, Radio X Network, KUIW (San Antonio, TX), PopFusion Radio, Ozone Radio, Zimmer Radio (Joplin, MO), Loud City, Power Radio International, WEOS (Geneva, NY), WGSR.us

KALW (San Francisco, CA), The Miz Radio, GalaxyStorm Radio, MaxMarch Radio, KRUA (Anchorage, AK), Radio Odyssey, Indie Airplay, Grooveradio, LastCall-Radio, Melted Metal Web Radio, The Hot Cakes and Sausage Morning Show, KVMR (Nevada City, CA), OutboundMusic, Radio Keneally, KHPZ Radio Network, Italian Graffiati, Radio Skipper, Whitedove Radio, Cape Praise Radio, Cape Christian Radio

Kansas City Online Radio, Variety-FM Gold, Mix Utah, KCWU (Ellensburg, WA), Japan-A-Radio, Radio Underground, The Geek Radio, Small Webcaster Community Initiative, Radio Orenovscotia/Radio Atlantiapax, UpStageRadio, Energy93, SlowMotionDisaster/KilledByDeath, WEMU (Ypsilanti, MI), Big Blue Swing, Grooveshark, ShockNetRadio, Power House Mix, Barcelona Jazz Radio,

WAjP Net Radio Network, RadioYHot/Rock/ZRadio, Delicious Agony Progressive Rock Radio, KHUM/KSLG (Humboldt County, CA), HotNGold, Stop and Go Radio, Radio Voz de Gracia, Beauty From Ashes Radio, Polka Jammer Network, TUN3R.com, Sun-Music, #1inMusic, Rap Planet Broadband, Beatles Radio, KUIW.org, RadioRadio, Beatles-A-Rama, WinniRadio, KOOL Mix Radio, Radio66

Apex Broadcasting stations (Charleston, SC), Christian Music Radio, SCIR.net, OWL Radio, Energy 98, WUSC (Columbia, SC), Hussieskunk, Community Radio Group stations (Joplin, MO/Texarkana, AR/TX), BlakeRadio Network, WAER (Syracuse, NY), WBEB/Philadelphia, Christian Broadcasting System, WMEX (Rochester, NH), NativeRadio.com, Mixutah.com, BCN Online, WPRB (Princeton, NJ)

Radio Free Charleston, Radio Dismuke, Crawford Broadcasting (Rochester stations), BeyondTheOrdinary, BeatMixing, The Guitar Channel, Smack Networks, Mountain Echoes Radio, KTRU (Houston, TX), KXUL (Monroe, LA), KZSU (Palo Alto, CA), SCADRadio, WONY (Oneonta, NY), WSUM (Madison, WI), WSWI (Evansville, IN), JACK.FM, Gremlin Radio, Majyckradio, Christmas Melody/SmoothChoice

KALX (Berkeley, CA), MPYR Radio, HardRadio, WRLT (Nashville, TN), sfSoundRadio, BostonPete.com Radio, KSSU (Sacramento, CA), Midnight Blues, 108 The Rocker Online, MegaShuffle.com, Euro-Rock Radio (U.S. streams), Chillout2NewYork, TheTimeMachine.fm, A3radio.com/AnnArborLive, Women Rock Radio/NTG Radio, TimsRadio.com/FlamencoRadio.net, RadioShows, LG73 (Canada), SpiritCo1.com

CultRadioAGoGo, Orbital Grooves, Radio DePaul, Radio Darkness, Zydeco Online, WHEM (Amagansett, NY), Dred Radio, WKUF-LP (Flint, MI), KOMO (Seattle, WA), Radio TuIdentidad, The BuzzOutRoom, V103 Radio, Broke N' Beat Radio, Hot97.com, 1Club.fm/WBMX.com/0180s, KADI (Springfield, MO), First Natchez Radio Group stations, Chicago Radio Network/Thug Life Army Radio, A World of Blues

KFJC (Los Altos Hills, CA), Access.1 Communications, Offshore Music Radio, KWFC (Springfield, MO), Rhythm96, WPCI (Greenville, SC), Webmaster Radio, Pirate Underground Radio, Boskey Radio West, AllFurRadio, Jammin’ Hitz Radio, KRRC (Austin, TX), Radio Enigma, Rocket Radio, Winds of Praise, FONYE Radio/FONYE Gospel, Music Tampa Bay, NetRadio100, DementiaRadio, Rapid Radio

No Holds Barred, StreetBlast.com, WNKU (Highland Heights, KY), Hope Mountain Radio, WMPH (Wilmington, DE), 1710A7BN.com/HillBilly97.com, BassDrive, OldSkool101/Rock100Diz, Shirley & Spinoza Web Radio, WMHB (Waterville, ME), Delmarva Broadcasting Company stations, MusicNerve, WNCS/WDOT/WRJT "The Point" (Vermont), SuperStationXRB, HometownRadio.us/RealGoldRadio

Radio DavidByrne, Vermont Public Radio, WGCR.US, World Gospel Jazz Broadcast, The Under World Radio, Radio Done Studio, DekaDance-Radio, the miXed taPe, NRC Broadcasting (Denver, CO), The World Wide Radio Network, The WebChat Radio Network, IR & RS channels, Public Radio Partnership (Louisville, KY), Pittman Broadcasting Services stations, Sierra H Broadcasting, My Sonic Tonic

Cool Classic Country, Second Life Public Radio, KSCS/BKCW (Edmond/McAlester, OK), POJRadio

Have an opinion? Drop us a note! (Or, to use your own e-mail software, click here.)


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Your name (if not obvious from your e-mail address):
Kurt and Paul, this is deep background -- don't quote me!

Thanks!

Reader Feedback
We're just starting to get to some of the feedback on the Day of Silence...

"Congratulations on an excellent campaign..."

I phoned two Senators from Washington State urging their support to co-sponsor the Internet Radio Equality Act.

Sen. Cantwell's office assistant answered personally and politely, saying she would pass my message on to the Senator. I sensed there were an abundance of calls from her reply.

Congratulations on an excellent campaign!!! Every detail is covered, the initiatives you and your staff have taken are very powerful to make the case to save net radio. Your RAIN newsletters are especially informative and I've forwarded copies to friends every day. Keep fighting the good fight.

My hope is now the July 15th deadline will be pushed back to a future date that will allow more discussion and perhaps, ...perhaps....replacement CRB commissioners!

Russ Butler

"Maybe the labels would be willing to take a smaller share..."

John Simson was quoted on the impact of the Day of Silence as saying, "The absence of music will happen when

performers are not adequately compensated fairly for creating... I think in their own back-handed way they are proving our point, which is performers need to compensated so we will have wonderful works being created."

Unfortunately the interviewer didn't ask him the obvious follow-up questions:

"How much in compensation was earned from all those stations who didn't play music on the Day of Silence?"

"How much compensation do you expect from stations that go off the air on July 15?"

Simson's attitude reminds me of the story of the blind man with a tin cup selling
pencils on the street. He's selling them for $100,000 each. When asked why he was
asking so much, he replied, "All I have to sell is ONE!"

P.S. Have you noticed that the harm being done is always to "the artists," and Simson
never mentions his record label members who get half of every royalty dollar? If it were really "all about compensating the artists," maybe the labels would be willing to
take a smaller share so the artists get more.

Fred Wilhelms

"CBS (is) running PSAs in support of the Internet Radio Equality Act..."

I was just listening to a CBS station, and they're running PSA's in support of the IREA.

So even though they couldn't break through the internal red tape it would take to bring down a whole fleet of streams… they're doing their best to support the cause.

Deep background

"I bought a Live365 subscription so I could listen to Southern Gospel..."

Wow! Keep up the good work and I am sure it will have an affect on this ridiculous unfair pricing.

I'm a member of Live365 and have bought a year's subscription so i can listen to the Southern Gospel music I love so much. How sad it would be if the music stopped.

Remember that song "The Day the Music Died?" How sad that would be.

Donna Miller

"A major reason I listen is to discover artists (which I play) on my show..."

I produce a folk/acoustic show on Live365 (Fiddles & Frets). I've also started using
the services of Pandora.

A major reason I started listening to Pandora is to discover artists that I was not aware of. When I hear an artist I like, but don't know about, I e-mail them, and ask them if they would like me to play their music on my show. They send me their recording(s), or e-mail me some MP3s, which I upload to my playlist.

So, not only do they get paid on Pandora, but also by Live365 through my show. It's kind of creating a synergy by using several internet radio providers, thereby increasing exposure and royalties to artists, mostly independent artists.

This is just another creative thing that internet radio allows that will go down the tubes, if internet radio is gutted.

Ray Naylor

"To hear and see the evolution of other people, culturally, scientifically..."

I'm one who enjoys the internet medias : Multimedia, writen, radio and TV.

I live in another Country then Yours, and I enjoy the world radios, TVs and Medias
productions, broadcastings, writings, caricatures and photography. Between critics and narratives as between news and documentaries, Life has never and will never be
between hands of money makers or between the politicians slave of the material world. We understand the money as an earning of the works and makes but we can't
understand that we'll be the slave of them. And if we can't earn money from, we must find another way for earning properly and not by interdictions as the dictators and/or predators!

It's very nice to hear and to see the evolution of the other people -- culturally, scientifically, etc. We always have a look of how they other rise as of how the exchanges can be between us as between all the people of this wonderful planet. It's our form of learning as of teaching. Internet if it's a wonderful instrument of exchanges between us (used for best as for worst needs of the institutions, associations and governments or any sort of human's groups... as between two humans...), it's a nice media too for any sort of broadcasts, documentaries and fictions/non-fictions in videos, audios, writes, design, draws and photography. We all have our cyber-space inside it : For earning money as for diving free!

I've been an experience in the Internet radio (same from the short, medium and
long waves as in FM bands radios)... A very cute one! For example, when I hear a
jazz's (rock'n'roll, countries, malouf, merengue, zouk, African, Asian, classical, fusion, new age, etc.) music or song (*) in an US's radio and another country radio (like Switzerland, Deutschland, Japan, Korea, South Africa, Algeria, Spain, Italy, Kenya, Russia, India, etc.), the same jazz music or song have another senses, feelings and awareness! And same, when it heard from public, private and free radios (!!!) of a same country!!! You've to try that awesome experience.

"Be a source of wealth and knowledge, but not a source of decadence and ignorance."

Deep background only


June 28 - July 1	Conclave 007: Radio Under Construction: Minneapolis
August 17 & 18	BandWidth 2007: San Francisco
September 26-28	R&R Convention: Charlotte, NC
September 26-27	NAB Radio Show: Charlotte, NC
October 13	IBS Webcast Conference: Seattle, WA
October 20	IBS Webcast Conference: Boston, MA
October 25-28	College Broadcasters Inc. Natl. Conf.: Washington, D.C.
October 27	IBS Webcast Conference: Chicago
November 4-6	NAB European Radio Conference: Barcelona, Spain
December 1	IBS Webcast Conference: Fort Lauderdale, FL
December 8	IBS Webcast Conference: Los Angeles

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Kurt Hanson Publisher	Paul Maloney Editor	Daniel McSwain Assistant Editor	Ralph Sledge "Site of the Day" Editor