The Copyright Royalty Board (CRB) has recently released a revised fee schedule for internet radio. Left unchanged, these rates will end internet radio, period. The RIAA has effectively convinced this federal committee to establish rates that make online radio a non-viable business.

It’s an utterly ridiculous ruling that renders any form of internet radio non-economic. We are continuing in the belief that sanity will return as everyone involved, including the 50 million avid online radio listeners.

Online radio has opened up a new world for musicians and listeners alike. It has brought millions of otherwise disconnected music-lovers back to music radio, and has opened up tremendous access and promotion for thousands of musicians – both obscure and well known.

There are so many companies striving very hard to build a business and employ a number of full and part time people, despite very high licensing and streaming costs, believe that they could make it work over the next several years if internet advertising continues to grow. This ruling drives the licensing fees (fees that are NOT paid by terrestrial broadcasters) completely out of reach, and makes their goal impossible.

This is a terribly ill-conceived attempt to crush a powerful and positive grassroots movement that is sweeping across the music world. The record labels’ struggles have nothing to do with online radio and killing it will further hurt their business, not help it.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s