Campaign to Save Internet Radio

Our traditional media system has become increasingly consolidated, as media companies have merged into vertically-integrated media giants. As a result, creative, diverse and local voices have begun to disappear from traditional media. Cookie cutter music and pay-for-play policies have already destroyed diverse musical content in the world of traditional radio and television. Tune your car radio to a FM music station and you’re likely to hear nothing but the inflated artists of the most powerful radio labels. Corporate media means corporate music.

In response, students and entrepreneurs and music enthusiasts have turned to the Internet as a place to create a robust media environment. Internet Radio “webcasters” provide a crucial outlet for truly diverse musical choices and a platform for new and independent artists.

However this new medium is under assault. A ruling by an obscure regulatory agency, the Copyright Royalty Board (CRB), threatens to silence thousands of Internet radio stations. After intense lobbying from the traditional recording industry, the CRB is about to mandate huge increases — as much as 1,200 percent — in royalties paid every time Internet Radio webcasters stream a song online.

To truly reform our entire media, to have quality news, content and diverse ideas, we’ve got to protect the ability of new media entrepreneurs to survive and grow. Musicians have long been compensated through royalties and this must continue, but the new increased royalty rates applied to Internet outlets would silence many outlets that play independent artists and musical genres that just can't be found on the radio dial. If these unfair new rules go into effect on July 15, new and independent webcasters will go out of business and leave the online music market in the hands of the biggest corporate broadcasters. At stake is the diversity of musical choice that the Internet has come to represent for more than 50 million listeners.

The best way to protect both consumers and creators is with a fair rate which ensures the viability of independent and innovative sources of music and creative content. Ideally the CRB would create dynamic rates which fit the size and the scope of fledgling webcasters. For example, community and college radio stations have little revenue and should pay lower royalties. Growing Internet-only webcasters, including Pandora and Live365 which allow consumers to create their own “stations,” should pay more, but not be priced out of business.

Representatives Jay Inslee (D-WA) and Donald Manzullo (R-IL) have introduced the bipartisan Internet Radio Equality Act (H.R. 2060), which would reverse the CRB decision. A similar bill was introduced in the Senate by Senators Ron Wyden (D-OR) and Sam Brownback (R-KS). We’re calling on Congress to pass these bills before the CRB decision takes effect on July 15th.

The mainstream music industry is finally moving into the online space but they don’t want to have to compete – instead they’ve pushed through this new rate hike to help solidify a monopoly in the online music market.