x DiMA, SX in communication breakdown According to reports that are just surfacing, it appears that the Digital Media Association (DiMA) has now rejected the offer made by SoundExchange last Thursday to cap the $500 per-channel minimum fee at $50,000 per year, claiming that an unrevealed condition of SX's offer was that webcasters implement digital rights management (DRM) technology on all of their streams. A CNet News article (here) says that "in exchange for the cap, [SoundExchange] is calling for Webcasters to 'agree to implement technology related to streamripping...provided such technology is feasible and is available on reasonable terms.'" The CNet article reports that SoundExchange director John Simson sent a letter to DiMA on Monday claiming that DiMA "mischaracterized" his group's offer to webcasters. (DiMA's characterization of SoundExchange's offer was that webcasters would need to "research, identify, review, and evaluate" such technologies.) More coverage in DigitalMediaWire here; Wired's Listening Post blog here. RAIN will publish a full report on this issue in tomorrow morning's issue. (RAIN Preliminary Analysis: This seems to be a near-exact replay of recent brouhaha. Once again, SoundExchange appears to have made an offer to DiMA in front of Congressmen subject to conditions they didn't reveal until the following week. (On July 2, it was revealed that SoundExchange's offer in front of the Small Business subcommittee was effective only through 2008. This week, it turns out that offer made in the Commerce committee roundtable -- which was only conditional on "help" with the streamripping issue -- is actually contingent on mandatory implementation of DRM. "Oh, that's quite different.") x

From CQ.com: "Not long after a panel of copyright judges decided in March to hike music royalty fees for Internet radio stations, small webcasters began a lobbying blitz on Capitol Hill, saying their business model was in danger.

"The campaign only recently paid dividends: The new fees technically went into effect July 15, but most webcasters are still playing songs — and still paying the older, much lower rates — in part because of efforts by Rep. Edward J. Markey, D-Mass.

"Markey brought webcasters and representatives of the music industry together in last-ditch talks late last week...

"Copyright issues are not under Markey’s jurisdiction as chairman of the Energy and Commerce Subcommittee on Telecommunications and the Internet. But Jessica Schafer, his spokeswoman, said Markey decided to host the Web radio negotiations because 'he does have jurisdiction over the Internet, and he has a longstanding interest in the issue.'

"If anything, Markey has spent much of the past year positioning himself as a key player on emerging technology issues. Schafer said Markey has not taken a side in the negotiations but rather is interested in helping the parties find their own solution...

"While webcasters have been granted what appears to be a temporary reprieve from the new rates, any decisions overseen by Markey would still have to be submitted to the Copyright Royalty Board for its review or be enacted by Congress.

"SoundExchange plans to remand any final deals to the board for it to implement, [spokesperson Richard Ades] said. But many smaller webcasters want a new law in place so that they have more certainty about their legal responsibilities...

"Christine Hanson, [Rep. Jay Inslee's] spokeswoman, said he prefers negotiating to legislating. 'Simply because of the time involved, it just would be a lot faster,' Hanson said. 'But for Jay (pictured above right), the number one thing is reaching an agreeable solution to both sides, where artists feel like they’re being compensated fairly and webcasters can have a sustainable economic model.'”

Read the entire article at CQ.com.

From Mediapost: "Radio was the top-gaining web category in June — up 34% from May to 48.9 million unique monthly visitors, according to comScore MediaMetrix's latest rankings and analysis of U.S. online activity.

"Yahoo! Music led the growth in the category with more than 25 million visitors — up 11% — while AOL Radio rose 11% to 3.2 million visitors, and Disney Music 16% to 1.1. million visitors."

Read the entire article at Mediapost.

From the Cincinatti Frontier: "WOXY will return to the airwaves here as a high-definition channel when public radio station WVXU-FM starts HD broacasting next month.

"WOXY has been an web-only stream since 2004, after Doug and Linda Balogh sold their Oxford radio station.

"But before the sale, WOXY-FM's 'Future of Rock and Roll' was tough to get from Oxford throughout most of Greater Cincinnati and Northern Kentucky. Soon WOXY listeners will be able to hear the station — if they buy a car or home HD radio.

"It's a smart move for Cincinnati Public Radio, which operates... two mulitcast WGUC-HD services, a simulcast of WGUC-FM and a 24-hour jazz channel. Putting WOXY on HD — technically it will be known as WVXU-HD2, with the 'VXU simulcast as WVUX-HD1 — fills a void in Cincinnati radio, and allows Cinci Public Radio to reach a new demographic...

"Neither Richard Eiswerth, Cinci Public Radio GM, or Bryan Jay Miller, WOXY.com, know how many folks have HD radios here now. They hope this new partnership sparks sales."

Read the entire article at the Cincinatti Frontier website.

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