I’m seeing conflicting reports about the latest developments in the attempt to impose royalty payments on Internet radio stations. No less a mainstream media authority than the Washington Post makes it seem like the advocacy efforts failed and the new fee structure is a done deal:
“The D.C. Circuit Court of Appeals has refused to stop an increase in royalty and broadcasting fees, jeopardizing the future of some stations. As a result of the decision, handed down Wednesday, fee increases will take effect in two days.”
But then, a well-known but still relatively unknown blog like TinyMixTapes posts this:
“Despite many setbacks in the past months, as well as this week’s court denial of a “motion to stay” petition by webcasters, internet radio has been saved from the freakish royalty rate increases originally due to take effect this Sunday. “A commitment has been made to negotiate reasonable royalties, recognizing the industry’s long-term value and its still-developing revenue potential,” wrote SaveNetRadio on its website.”
SaveNetRadio, the coalition representing various online radio stations seems to confirm the second report:
“Congress and SoundExchange have heard loud and clear the amazing outpouring of support for Internet radio from webcasters, listeners and the thousands of artists they support. A commitment has been made to negotiate reasonable royalties, recognizing the industry’s long-term value and its still-developing revenue potential.
During negotiations SoundExchange committed temporarily not to enforce the new royalty rates so webcasters can stay online as new rates are agreed upon.
This development is due in great part to the millions of people who have let their Congressional representatives know about their support of Internet radio. Over 125 representatives have cosponsored the bill to this point. “
So it sounds like good news at this point but we’re not out of the woods either. Keep watching the blogs and sites I linked to above (especially the SaveNetRadio site) for further developments.
- JH