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RAIN 6/25: NAB's anti-performance fee act gains House majority
·Jun 25, 10:40 AM
Posted by: Paul Maloney

NAB NABS MAJORITY IN HOUSE: With the signatures of four more U.S. Representatives, The National Association of Broadcasters (NAB) now has a House majority of 219 co-sponsors for their Local Radio Freedom Act. The act opposes a performance royalty fee for broadcast radio, which was proposed by the record industry (RAIN coverage here, here, and here). “Today’s announcement sends a powerful message to foreign-owned record labels that Congress is not falling for their bogus campaign to blame local radio stations for their financial woes. NAB thanks those members of Congress who appreciate the fact that free radio airplay of music generates untold millions into the wallets of performers and record labels,” said Dennis Wharton, NAB Executive Vice President. For more, read RBR.com’s coverage here.

UNIVERSAL BROADBAND INITIATIVE LAUNCHED: FCC member Jonathan Adelstein (pictured) and “several high-profile technology executives and industry advocates” launched an initiative yesterday through InternetforEveryone.org to raise awareness about high-speed internet issues. Stating that government has not done enough to address broadband access concerns, the movement wants high-speed Internet access for every home and business and a “sizable” choice of broadband providers so that “openness” and innovation is promoted online to help “create jobs and foster entrepreneurship and economic growth.” Said Adelstein, “There’s no want of proposals [for a national broadband policy], there is want of willingness and leadership to implement a policy. What we need is this kind of movement — a coalition that can bring together the public choice.” An example of such a proposal, nationwide wireless internet, is currently being considered by the FCC (RAIN coverage here). For more on the initiative, read PC World’s coverage here.

PRO-DAB UK GROUP: TRANSITION FM TO DAB BY 2020: The Digital Radio Working Group (DRWG) — a UK government working group formed to investigate how to effectively transition all UK radio stations to digital radio — has released its findings, proposing that a switch could take place by 2020. The transition to DAB would have to overcome flagging interest in digital radio, as well as poor reception. Some observers have pondered (here) whether digital radio will even be a “relevant technology” by 2020, as the Internet becomes a more cost-effective and widely-available method of broadcasting. For more on the DRWG report read BBC’s coverage here.

NEARLY HALF OF AMERICANS WANT FEDERAL INTERNET REGULATION: A new study by Rasmussen Reports reveals that 49% of Americans think “that the federal government should regulate the Internet the same way it does radio and television.” However, 35% disagree, with 16% undecided. 73% also believe online harassment should be a crime. 71% of respondents said they were familiar of the case of Lori Drew posing online as a young boy to a neighborhood girl, causing the latter to commit suicide—an incident Rasmussen believes may have influenced respondents’ opinions. Interestingly, the report also revealed that income and race is a factor in online usage, with 53% of whites claiming they use the Internet every day, compared with 28% of blacks. This may point to the digital divide of technological have’s and have-not’s that some are trying to avoid. To read Rasmussen’s full report, click here.



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Comment

  1. The NAB’s strongly worded comments that state “that Congress is not falling for their bogus campaign to blame local radio stations for their financial woes, “ is a breath of fresh air to Internet Radio’s and DIMA’s , annoyingly polite and non-aggressive approach to dealing with the never ending strong arm tactics and continual flat out lies of the Sound Exchange and RIAA. How many times has Sound Exchange falsely accused Internet Radio of lacking viable business models! Well – back at cha guys! Finally fire meets fire!

    It will be interesting to see how this plays out, as Internet Radio has never claimed that they should be exempt from paying mechanical performance royalties to the labels. However, Broadcasters feel that they should be completely exempt. If congress rules in favor of the broadcasters, then this most certainly creates an unfair business advantage for terrestrial radio over internet radio, if they are exempt to pay royalties for their streams. If this exemption to pay royalties applies only to their terrestrial broadcasts, then it may present a major deterrent to terrestrial stations when they are deciding to transition their properties to the web

    Val Starr · Jun 25, 11:49 AM · #

  2. I think radio companies should consider exchanging small royalties on terrestrial signals in exchange for some real royalty concessions on webcasts.

    It looks like the past vs. the future to me.

    Bob bellin · Jun 26, 02:47 PM · #

  3. I share and appreciate the concern of those who want all artists remunerated for their creative works and efforts.

    As the operator of a small Internet-only radio station, I think I’m in a position to write that those who are broadcasting legally over the Internet and who are regularly remitting royalties are not quibbling with the idea of fair compensation for the use of copyright-protected works. Indeed, many of us find disingenuous and misleading the words of some who would portray Internet broadcasters as harboring a “zero-sum” mentality in respect of the value of the material we broadcast. As well, many find unnecessarily provocative and harmful the words of those who depict our concerns as being tantamount to the “boy who cries wolf”. Such language does not promote reconciliation or compromise, in my view.

    Rather, webcasters are concerned with the discriminatory nature of the DMCA. Whereas satellite radio and cable radio enjoy the more liberal and reasonable 801(b)1 standard, the DMCA prescribes the “willing seller and willing buyer” criterion where Internet radio is concerned.

    Indeed, there are many who reckon that, but for its reliance on the willing buyer, willing seller standard, which many agree is problematic, the CRB would not have had the authority to impose on Internet radio fees predicated on per performance rates.

    It is hoped that, as more terrestrial radio stations simultaneously broadcast through the Internet, in response to its constituents’ needs, the NAB will use is influence and good offices to prevail upon Congress to enact into law the Internet Radio Equality Act (H.R. 2060 in the House and S. 1353 in the Senate).

    Charlie · Jun 27, 03:50 PM · #

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