http://www.radio-info.com/news/from-conclave-bonnevilles-reese-open-to-a-deal-on-performance-royalty-but
The problem here is the it lets the wolf into the henhouse. All you have to do is look at how this royalty has hamstrung internet radio. Pandora is expanding, but every new subscriber means their royalty rate increases. The system penalizes success.
The system itself is flawed. The proposed law puts the royalty in the hands of the RIAA, instead of independent PROs, as they do with songwriting royalties, and in other countries. It puts the valuation of music in the hands of a Copyright Royalty Board, which is a group of people who clearly haven't read that the public wants music for free. The CRB has been increasing royalty rates for years, while the real value of music has plummeted.
Unless there is a comprehensive look at royalties, including digital and songwriting, any deal made with the RIAA will create even bigger problems. Because the songwriters currently get only 2% of revenues, while the proposed label royalty could reach as much as 15% of revenues.
The music industry says satellite and internet pay a performance royalty. But they are digital media, which allows users to make CD-quality copies. Plus digital media has two revenue streams: Advertising and subscription. OTA radio is prevented from charging a subscrition fee.
The fact is that any time money has been placed between radio and the labels, a crime has taken place. This will open the door for payola on a mass scale. The rich will get richer, and the poor will be left out in the cold. That goes for radio stations, artists, and indie labels. This will put music behind a pay wall, and force radio stations to collect money for record labels, getting nothing more in return.
The problem here is the it lets the wolf into the henhouse. All you have to do is look at how this royalty has hamstrung internet radio. Pandora is expanding, but every new subscriber means their royalty rate increases. The system penalizes success.
The system itself is flawed. The proposed law puts the royalty in the hands of the RIAA, instead of independent PROs, as they do with songwriting royalties, and in other countries. It puts the valuation of music in the hands of a Copyright Royalty Board, which is a group of people who clearly haven't read that the public wants music for free. The CRB has been increasing royalty rates for years, while the real value of music has plummeted.
Unless there is a comprehensive look at royalties, including digital and songwriting, any deal made with the RIAA will create even bigger problems. Because the songwriters currently get only 2% of revenues, while the proposed label royalty could reach as much as 15% of revenues.
The music industry says satellite and internet pay a performance royalty. But they are digital media, which allows users to make CD-quality copies. Plus digital media has two revenue streams: Advertising and subscription. OTA radio is prevented from charging a subscrition fee.
The fact is that any time money has been placed between radio and the labels, a crime has taken place. This will open the door for payola on a mass scale. The rich will get richer, and the poor will be left out in the cold. That goes for radio stations, artists, and indie labels. This will put music behind a pay wall, and force radio stations to collect money for record labels, getting nothing more in return.
