Well, on July 15 a new rule goes into effect where Internet stations will have to pay a royalty for each time a song is streamed (as opposed to the old system where, essentially, a station paid royalties that could never exceed the equivalent amount of US record sales). What does this mean? It means most of these stations will be put out of business! Take, for example, a web-based sation in San Francisco. In 2005 they paid $20,000 in royalties, under this new rule that number will jump to $600,000!
It's pure unadulterated greed on the part of music companies. An attempt to extort money in order to stem the flow of so-called losses in record sales. You can't expect me to have sympathy when a CD costs $20 and the reason for it is the label gave the band a $70 million, 4 record deal. Not to mention the fact that the companies are operating with an obsolete business model. You simply cannot take terrestial business methods and apply them to the Web, it doesn't work. Yet they stubbornly refuse to evolve or die, and our government, acting as if these companies have a God-given right to exist bail them out time and again. Call it the Divine Right of Big Business. If King George were alive today he'd probably be head of one of these music companies.
But this goes beyond that. This goes to the very heart of the American dream. Big business in so many industries is so in control of the system that small businesses quite frankly have absolutely zero chance of survival. With the enactment of this rule, this will certainly be the case with radio.
But it is not a foregone conclusion! We still have a chance to stop it. Write your senator or congress person and tell them how this displease you and how they should take action against it. Support the cause of listener supported radio. But first, and above all, educate yourself. Check out these sites below and then do what you think is right.
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