* Update * Did the ‘Day of Silence’ Work? Did you even know about it?
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Today SoundExchange issued a press release stating that the organization has proposed a voluntary cap on the minimum fees charged against royalties for sound recordings played on Internet Radio. According to the press release, SoundExchange proposed capping such advance payments at $2,500 per service.
Recently enacted regulations (due to go into effect on July 15) require each webcasting service to pay a $500 minimum fee “per station or channel” regardless of the overall number of stations/channels they are streaming.
Jonathan Potter, Executive Director of the Digital Media Association, issued the following statement:
DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented to us in writing, which would terminate in 2008. Any offer that doesn’t cover the full term is simply a stay of execution for Internet radio. The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth. A billion-dollar “minimum fee” is equally absurd in 2007, 2008, 2009 or 2010. It should be eliminated – period.
If something is not done soon (We have 16 days till the new laws take effect), this will spell the end for most internet radio stations including the big guys, all the way down the line. Little independent ones will no longer be able to get the hosting service from the streaming services providers any more. Most will not be able to invest the cash for dedicated servers for hosting. I fear the next time the internet goes quite it will be for good.
Did the ‘Day of Silence’ Work? Did you even know about it? *Part 1*
Tags: digital_media_association, General-news-and-Rants, internet_radio_stations, Off Topic Rant, PC News
