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Thanks
to all the fine companies
(including those listed below) who agreed to be part
of our recent "RAIN
Vendor Guide (Ver. 2.0)" issue. If
you didn't have a chance to spend time with it yet,
you can access the issue here.
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The
U.S. Copyright Office has published in the Federal
Register their full final rule and order on webcasting
royalty rates. The document sheds quite a bit of light on
the reasoning used by the Register of Copyrights and the Librarian
of Congress in their decisions. Please see the document online
here,
and then look for analysis soon in RAIN. Thanks.
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BY PAUL MALONEY
Small independent webcasters are using what they feel is their
most powerful tool -- their connection to their listeners -- to try
to  save
their businesses from the doom of untenable royalty charges.
Several webcasters are renewing their efforts to convince their
listeners to contact their Congressional representatives and ask for
emergency legislation to save Internet radio. They're offering visitors
the use of a "form letter" which is personalized and sent
to the listener's Representative and Senators.
"I am writing you to express my strong request that you
support immediate legislative relief for small webcasters on the Internet,"
reads the message visitors to sites like RadioIO
and Beethoven.com can
send. "I listen to Internet radio and I want to see the current
variety provided by these small, independent entrepreneurs preserved."
If the Librarian of Congress's determination of the matter
goes into effect, webcasters would be forced to pay $0.0007/song/listener
royalty fees to stream sound recordings. Representatives Rick
Boucher (pictured, D-VA) and Jay
Inslee (D-WA) have already indicated to the industry that
they are considering introducing legislation that would grant an emergency
"stay" on the fees, and reevaluate the arbitration process
that determined the fees in the first place.
The goal of the program, also supported by webcasters like
IRH-Live
and Digitally Imported,
is to generate one million faxes
from listeners to legislators in Washington. The fax generation and
transmission services are provided by advertising technology firm
Lightningcast. The
company also provided the service to the industry on its May 1st "Day
of Silence" event.
Just that one day, according to Lightningcast, over 5000 Internet
radio listeners sent over 15,000 faxes to Washington using the company's
service.
Other webcasters who wish to allow their listeners to participate
are invited to link to the "Voice Of Webcasters" site. Small
"commercial" webcasters can find the sample fax letter here,
noncommercial webcasters can use the letter here
that's more tailored to their situation.
Yesterday RAIN reported (here)
that RIAA chairman Hilary Rosen, in a speech to 200 industry insiders
at the Jupiter Plug.In conference in New York,  had
inferred that Beethoven.com Director of Business Development Kevin
Shively ("the guy at Beethoven.com," she said) is unwilling
to compromise because he isn't willing to pay anything for sound recording
royalties.
Kevin responds to RAIN: "It's unfortunate that Ms. Rosen
would choose to publicly make statements that very obviously misrepresent
the position of Beethoven.com. For the record, Beethoven.com has never
made statements or maintained a position opposing fair and reasonable
performance royalties -- a fact that we have made clear to representatives
of the RIAA and Sound Exchange personally.
"I would hope that in the future Ms. Rosen and her organization
would feel free to talk to me directly about Beethoven.com's position
on the issues, so that we can establish an honest dialogue in finding
a reasonable way for our two organizations to work in the best interests
of all." |
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From the L.A. Times: "Like millions of
other music lovers, Martin Hall misses the pioneering service from
Napster Inc.
that let consumers download songs from one another's computers for
free.
"But Hall isn't your typical music fan. He works for
a record label, Merge
Records, whose songs were being copied without a dime in
compensation.
"Merge is among a group of independent labels and artists
that view 'peer-to-peer' networks as an effective tool for boosting
CD sales.
"The major record companies and many well-known artists,
on the other hand, are fighting on multiple fronts to drive consumers
away from those systems. Whereas Merge and others have used peer-to-peer
systems to promote little-known artists and new releases, the major
labels have sued Napster, Audiogalaxy, Kazaa and three other file-sharing
networks, alleging copyright infringement on a grand scale. They
also are injecting bogus files onto the most popular networks to
stop users from downloading new songs, and they are contemplating
lawsuits against consumers who offer huge collections of songs to
copy...
"The split could pose a problem for the major record
companies in their legal battles against the leading peer-to-peer
networks.
In particular, the efforts by the independents could undermine
the major labels' argument that these networks have no significant
legitimate use...
"Even major-label artists can get a promotional push
through peer-to-peer networks, said entertainment lawyer Ronda Dixon,
whose clients include pop-reggae artist Shaggy. Dixon said one key
to the success of Shaggy's last CD, 'Hotshot,' was the breakout
song 'It Wasn't Me...' A disc jockey in Hawaii downloaded 'It Wasn't
Me' from Napster and turned it into a local hit, Dixon said. The
record company saw the response and released 'It Wasn't Me' to stations
across the country, pushing 'Hotshot' to the top of the Billboard
charts."
Read this complete article in the LA Times, or online
here.
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From AP in MSNBC: "Back
in 1999, Audiogalaxy
was a thriving Internet business on its way to drawing millions
of visitors a  month
to swap MP3 files and read reviews of music both obscure and esteemed.
Now the Austin-based Web site appears all but shut down, silenced
by a recording industry copyright infringement lawsuit.
"But it does have a legacy: the gradual, tentative steps
currently being taken by some of the music labels toward offering
uncomplicated MP3 downloads.
"Audiogalaxy agreed to settle last month just three
weeks after being sued. As a sequel to the music labels’ success
in their lawsuit against Napster, the outcome surprised analysts
only in the swiftness of Audiogalaxy’s capitulation...
"Phil Leigh, an analyst for Raymond James & Associates,
said Audiogalaxy’s founders — who are
in their 20s — probably hope to survive on a shoestring budget until
music labels decide to license recordings 'at reasonable royalty
rates' and might look kindly upon Audiogalaxy...
"The major record companies have primarily approached
online music by launching subscription services of their own, MusicNet
and pressplay, that employ copy-protection schemes. Using these
sites is more like renting songs than buying CDs. The songs become
inaccessible if the subscription lapses.
"Some in the industry are beginning to allow some portability,
however. The largest label, Universal Music Group, launched a subscription
service Tuesday that will make about 10 percent of its catalogue
— older, less popular albums — available for download to subscribers
who pay between $10-$15 monthly...Earlier this month, Warner Music
Group took a similar step, giving online music distributor FullAudio
the right to sell downloadable songs that can be burned onto CDs."
Read this entire article at MSNBC here.
A very nice "obituary" of the service by a former employee
is online here.
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This is feedback to yesterday's lead story here...
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"Put
a big dent into the RIAA's monopoly..."
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"If the government wants to subsidize webcasters,
let it. We can't afford to," she [Hilary Rosen, RIAA Chairman] said.
What? Subsidize what? I dont know how dense Rosen is, but
last year I bought 70-80 new cds all for my streams. How is that
you subsidizing my stream?
Rosen and her Gestapo are dinosaurs unable to adapt to and
use the opportunities that the Internet has to offer. If enough
webcasters turn to Indie-only music, maybe within a few years they'll
be able to put a big dent into RIAA's monopoly and artist exploits.
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"Destroys
potential clients' exposure to diverse products..."
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"This is not a mom and pop issue, this is a business model
issue," Rosen concluded.
What?! What kind of business plan destroys the potential
client's exposure to diverse products? It's like forcing people
to shop with a blindfold in a supermarket.
I've e-mailed Sen. Leahy, Hatch, my congressional representatives,
and Pres. Bush to say the same.
Public stations
now off line
This is from the SOS:
Save Our Streams website, which focuses the struggle
against thewebcasting royalty rates as they pertain to independent
educational and noncommercial stations. |
| KWJC-MO; WRSU-NJ; WERS-MA; KTSW-TX; WSUM-WI; WSTB-OH; WONB-OH;
WXOU-MI; WZIP-OH; WUTK-TN; KDIC-IA; KETR-TX; WSBF-SC; WRMC-VT;
KSDS-CA; WNYU-NY; WSUW-WI; WEVL-TN; KRCL-UT; WSRN-PA; KXCI-AZ;
WUVT-VA; KSJS-CA; KDHX-MI; WPTS-PA; KBCS-WA; WMHW-MI; KBVR-OR;
KXRJ-AR; WDWN-NY |
| Silenced iM Network affiliates
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Zydeco to the Bone; Nuevo Wave-O; Jazzeteria; Altrok.com;
Celtic to the Bone; Extra Smooth Symphonie; Melancholia; Qawwali-On-Demand;
60s RnB to the Bone; Just Classic Rock; All Top40 Hits; Piecemeal;
Swing Central; Cafe Twilight; Jazz to the Bone; Drone Sickness;
Gospel to the Bone; Truly Cool, Cool Jazz; 400 Years of Hits
Jazz to the Bone; Hot Bubblegum 100; Dream Chamber; Modern A
Cappella; African to the Bone; Hillbilly Radio; Cajun N Country
to the Bone; X-tra Energy Dance; World Intensity; New Orleans
to the Bone; Modern Rock Hits; Rastaman's Reggae
MainLine Rock; Latin to the Bone; House Party; Love Field; Planet
Musiquarium; The Breakbeat Jungle; Succubus; Bollywood; Club
Reggae; Hyperspace; Murder, Betrayal and Redemption; Top RnB
Hits; ChitrapatSangeet; Resonant Radio; Sweet Revenge
Female Voices; Old Dawg Country; EnginesOfReagan; Lovecats;
Muddy Channel; Movie Music; Adventures In Radio; Truly Alternative;
Alt Songsters to the Bone; Spacerant; Trance-ilvania; Vox Radium;
50s RnB to the Bone; Box O Bone's; Digitalis; darcade; Not AA
Radio; Busted Heart Radio; Shuaku No Bi; Hillbilly Radio; Kickin'
Kountry; Cyberspace Sonata; Solvent Loud Radio |
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| July 25-28, 2002 |
The
Conclave 2002 Learning Conference: Minneapolis, MN |
| Sept. 12-14, 2002 |
NAB
Radio Show 2002: Seattle, WA |
| Oct. 1-4, 2002 |
Streaming
Media East: New York, NY |
| Oct. 20-22, 2002 |
NAB
European Radio Conference: Prague, Czech Republic |
| Oct. 30-Nov. 2,
2002 |
CMJ
Music Marathon 2002: New York, NY |
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