My Photo

« Family and Friends Money - Dos and Don'ts Seminar | Main | A Piece of the Action - A Different Approach »

March 16, 2007

Comments

Hi, Try sampling some of the other 7,000+ stations at Live365. Many of them are filling niches that can't be heard elsewhere.

The major problem with this decision is that it changes the playing field so completely. The old plan was to base the copyright fees on the income and expenses of the broadcaster. We professional broadcasters have to file monthly statements with SoundExchange certifying our income and expenses. We were to pay a minimum of $2K/year for this. The new plan charges us a set amount of each listener for each song. The increased my fees for 2006 from $2,000 to $4,773. And with one year of solid work under my belt (I was the third most popular station at Live365 in December 2006), with a solid core of listeners who will return next season, and with the improvements I have made and was planning to make for the Christmas '07 season, my estimate of my fees for 2007 will increase to $15,200.

So maybe, I'm proving your point, that the RIAA/SX is simply cutting off their nose to spite their face.

But the hard work I've put into my station (a hobby) and to be told that it doesn't matter, is ridiculous. The damage will be done, if this decision is not altered. A reasonable compromise perhaps? Start the new fees on January 1, 2008. Give us (and the market) time to react/adjust. Some of the broadcasters at Live365 are looking at retroactive copyright performance fees in the 6 digit range.

Ordinarily I would agree with you that getting Congress to regulate something is a terrible idea. However you are blatantly ignoring that the webcasters are up in arms precisely over a GOVERNMENT decision that regulates the business in a way that would shut them out. CRB = Copyright Royalty Board, you know, the CRB of the US government. Before this round small webcasters, for example, had a private deal negotiated with SoundExchange, and hopefully they will in the future too. But you can't argue with a straight face that webcasters should just take it when the whole thing is about government getting intervened and screwing up the market in the first place.

GW

Michael,

Thanks for stopping by. I agree that it would be great if there was a longer time for a phase in so people could adjust. I don't think the CRB really thought this through, rather just did what the RIAA wanted.

Sux all the way around because it isn't free enterprise which is at the core of my argument.

I will check out some other stations, good advice.

Hi Greg,

Thanks for stopping by. In my draft post, I said, let's kill the CRB, make it go away and let the market decide. SoundExchange has a good dB and there are technical ways to keep track of all this. I backed off on that and maybe I shouldn't have. The core of the problem, you are exactly right, is the gov't in the first place. Probably well intentioned people trying to look out for the little guy; trying to be fair. Rarely works out that way, witness where we are today.

So, you are right that the Gov't screwed this up in the first place and there should be some way to unwind it, move to free markets without killing the little guy in the process.

The comments to this entry are closed.