Wil Wheaton's Geek in Review: RIAA Wants to Kill Internet Radio. Again.
WEDNESDAY MARCH 21 2007 12:00 PM
Submitted by WilWheaton. Edited By WilWheaton.
TAGS: RIAA, SoundExchange, Internet Radio
I'm not a huge fan of monopolies. As a consumer, and as a creator, I want to have as many choices and options as I can for interacting with content and audience.
That just makes sense, right? More choices is better, free market, etc. etc. etc. I mean, can you imagine a world where you go to turn on your radio, and all you can get is a top 40 station? "Now Wil, you're just being silly." You say, "I'll just listen to an indie station on the internet. I'll never have to hear the Red Hot Chili Peppers or Ashlee Simpson ever again."
Not so fast, Captain Smugs-a-lot. The douchebags at the RIAA (who, I have decided, have realized that they've failed to evolve with their industry and are now determined to destroy it) are working overtime to completely destroy our ability to enjoy online radio, like Radio Paradise, Soma.fm, radioio, and Pandora:
On March 1, 2007 the US Copyright Office stunned the Internet radio industry by releasing a ruling on performance royalty fees that are based exclusively on the number of people tuned into an Internet radio station, rather than on a portion of the station’s revenue. They discarded all evidence presented by webcasters about the potentially crippling effect on the industry of such a rate structure, and rubber-stamped the rates requested by the RIAA (Recording Industry Association of America).
Under this royalty structure, an Internet radio station with an average listenership of 1000 people would owe $134,000 in royalties during 2007 - plus $98,000 in back payments for 2006. In 2008 they would owe $171,000, and $220,000 in 2009.
The RIAA claim that they are working to "protect their artists." Like every other claim the RIAA makes, this is complete and utter bullshit. They realize that they can't force their outdated Big Hit business model on Longtail consumers any more, so rather than adapt to survive in the current marketplace, they're going to destroy it, and roll radio back to the pre-internet years when they could safely sit in their glass towers and twirl their mustaches while lighting cigars with 100 dollar bills. Uh, while we all listened to Toto and Survivor and liked it.
Bill Goldsmith, one of the guys behind the absolutely wonderful Internet radio station Radio Paradise, has written an impassioned and informative article about the beauty of online radio, and the consequences this ruling will have on broadcasters like him:
I have been in love with radio all of my life, and spent 30-odd years dealing with the conflict between my vision of radio as an art form and my FM-station employers’ vision of radio as a conduit for advertising. I have watched the medium that I love turn from an essential part of the process of connecting those who love making music with those whose lives are touched by it into a mindless background hum of advertising and disposable musical sludge.
With the advent of the Internet, we were finally able to bring to life the radio station I had always wanted to work for (and listen to): commercial-free, passionate, and embracing a wide universe of musical treasures, from the classic rock artists I grew up with to the latest indie discoveries, with a liberal sprinkling of world music, electronica, jazz, even classical. We have slowly built up a loyal audience and have been able to support ourselves while living our dream.
[. . .]
Crippling an exciting, groundbreaking industry like Internet radio is certainly not in the best interests of the public, nor that of musical artists, and not even - if history is any judge - of the music industry itself. Just as they were unable to see how the advent of home music taping actually spurred the sale of LPs and CDs, they are unable to tell exactly what impact Internet radio and other forms of digital media will have on the future of their industry - and to behave as if they do know, and for Congress to go along with them, is a grave error, and public disservice, that needs to be recognized and corrected.
I can feel Bill's passion and his pain. When I started my blog back in the stone age, I used Shoutcast to do a simple streaming radio station through Live365. I called it Radio Free Burrito, and it gave me a chance to live out a dream I'd had since I was in middle school: play music I loved, talk about the history of the band, record, or song, and pretend I was a KROQ or KMET (rip) DJ. It was great fun, at one time got all the way up to 100 listeners, and gave me something to do that kept me off the streets. Then the CARP was passed, and my simple little hobby became an expensive nightmare of reporting and bureaucracy. Those 100 people who could have been turned into customers for some of the indie or little-known acts I played never got the chance, because it was more important to the RIAA to cling to an outdated and dying business model, rather than embrace a new technology.
Now, they're at it again, against all logic and reason, but luckily for all sane people, a diverse coalition of broadcasters from Clear Channel to NPR ultra-indie webcasters have joined forces to fight this outrageous ruling.
Jonathan Potter, the executive director of the Digital Media Association, which represents major online companies affected by the decision, asked that the judges specifically allow a per-tuning-hour approximation measure for paying the royalties.Potter also asked the judges to clarify a $500 annual fee per broadcasting channel, saying that with some online companies offering many thousands of listening options, counting each one as a separate channel could lead to huge fees for online broadcasters.
NPR argued in its filing Monday that the new rules would have "crippling effects" on public radio's ability to meet its mandate of serving the public interest, and it also objected to the $500 per-channel minimum fee.A group of commercial broadcasters including San Antonio, Texas-based Clear Channel, the largest radio company in the country, also asked for a reconsideration of key parts of the ruling, saying that the methods used to calculate the fees were faulty.
The motions filed Monday covered relatively technical aspects of the ruling and mark the first of what is likely to be other legal challenges to the decision.
There are a few glimmers of hope here: This only impacts US-based internet radio, so until big business and nanny-state congressmorons get their China-like Internet filtering right here in the good old USofA, we can still tune into services like Last.fm, which aren't located here in the land of Freedom Fries and magnetic ribbons. Also, the fact that an evil conglomerate like Clear Channel is on board to fight it should tell us all a lot about just how bad this ruling would be for everyone (though it raises my suspicions more than a little bit; I'm far too cynical to believe that Clear Channel suddenly got a case of "concern for anyone but Clear Channel.")
I don't have a ton of additional personal commentary to add here; pretty much everything I want to say is summed up in the links above and below. But this is an important issue that needs wider exposure, and goes directly to the heart of consumer choice and technological empowerment of the same. I will add this: I agree with John Scalzi's (and Cory Doctorow's, and lots of other smart people's) suggestion that the greatest threat to authors is not piracy, but obscurity. I'd suggest that the same can be said of musicians. While the RIAA's contributors at the big labels may want to ensure that clones of Fallout Boy and Panic! at the Disco get massive radio play while unique acts like The Legends and Wilco struggle to get any airtime, I believe in giving audiences more -- not less -- choices and listening options. What does the RIAA have to gain by limiting our choices? I guess we should just follow the money, but fight them every step of the way.
Pissed off? Want to do something? Here are some resources to get you started:
RAIN: Copyright Law and the CRB: What Went Wrong?
Slashdot: Internet Radio in Danger of Extinction in the United States.
FAQ from Save our Internet Radio dot Com
Medialoper: NPR Starts a War
Webcasters Unite dot Net
And, of course, write, call, and fax your congressmoron . . . but be polite. Don't tell them you think they're a moron.
Wil Wheaton is really fucking tired of *AA orgs fucking up a good thing.

















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