Internet Radio & the Copyright Royalty Board (CRB)
How Independent Artists are Affected
(copied from musicSubmit.com)
As you've probably heard by now, the Copyright Royalty Board (CRB) recently approved a royalty rate hike for
all internet radio stations that play ASCAP & BMI registered artists on their stations.
The general consensus among internet radio station owners & operators is the rate hike will effectively
end web stations' ability to stay afloat financially;
as a result, internet radio stations will cease to operate,
reducing variety and choice in music on the internet.
Some FAQ's presented by musicSUBMIT.com
1. What does all this mean to the indie artist?
For the majority of indie artists who aren't concerned with receiving royalties from radio play, the decision
to raise royalty rates might contain a silver lining.
Any indie artist seeking radio play, and is willing to waive
royalty claims, is actually at an advantage over other artists looking to receive royalty payments.
Indie artist looking for the benefits of exposure and not money will most likely receive preference over
ASCAP/BMI -registered artists from reviewing web stations.
2. But won't web radio stations go out of business?
Web stations that play strictly indie artists and not major artists are not subject to royalty payments, assuming
the station secures a royalty payment waiver from the artist.
Of course, no major label is willing to forfeit royalty
payments from radio stations - therefore, web stations will be less inclined to play artists from major labels.
3. How will web stations make money, if they don't play major artists that draw all the traffic to their site?
The notion that a web radio station must play known artists to succeed in drawing traffic to their site is false.
Many stations are able to draw heavy, consistent traffic to their sites by playing undiscovered new talent for fans
looking for fresh, original music.
This holds true for every genre, from indie rock to world, soul, hip-hop,
new age, jazz, classical, punk rock, metal, electronica, and every other conceivable genre and sub-genre in the music
spectrum.
Web stations & sites will continually look for new ways to bring traffic (and revenue) to their sites.
Some sites offer to sell items for artists, such as CDs, downloads, and T-shirts.
Other sites offer premium services to artists, including booking, recording, & representation.
Still other sites use royalty-free artists on their stations to promote and develop a non-music businesses & sites.
4. So is this royalty rate hike a good thing for the non-registered indie artist?
Well, no.
Many independent web radio stations with modest advertising revenue prefer to play known & unknown artist in their
rotations, and any rate increase on royalty payments is a hefty financial burden.
Write your congressman at http://www.house.gov/writerep/ in support of keeping down royalties rates for
internet radio broadcasters.
Other sources:
Save Net Radio
Petition Online
WebCasters Unite
The UK version of this is PRS, which is another mine field for your brain to explode in.
This will take time to
explain but we will have the information for you, as and when our own brain can handle it!