ASCAP: ADD HD2 LICENSE ROYALTY: As the broadcast radio performance royalty fee pushes its way through another layer of legislation (RAIN coverage here) and the webcast royalty debate drags on (RAIN coverage here), another debacle over royalties has emerged. RBR.com reports that the ASCAP, in a new round of negotiations with the Radio Music License Committee, wants another music license royalty placed on HD2 channels. The ASCAP reasons that HD2 broadcasters haven’t received enough revenue to pay such a fee because they don’t air commercials in an effort to build listernership—but a Parks Associates study predicts 30 million HD receivers in the marketplace by 2012. Presumably, the ASCAP wants HD2 stations to start airing commercials, collecting higher revenues, and pay this new royalty fee. RBR.com points out however, that the Parks Associates study is highly optimistic at best: the “forecast of 30 million by 2012 began with the assumption that there will somehow be 4.2 million receivers in consumers’ hands by the end of this year – a pretty far-fetched assumption” considering only 300,000 were sold in 2007. Read RBR.com’s article here.

OXENFORD: CAN NET RADIO SURVIVE IF EVEN MAJOR PLAYERS CAN’T AFFORD ROYALTY?: Despite SoundExchange’s strenuous attempts to paint webcasters as “the boy who cried wolf,” almost a full year after CRB-determined royalty rates took effect, the damage is beginning to show — and not just to small, independent webcasters. In March AOL handed the reins of its webcast operation over to CBS (see RAIN here), saying that despite being the most-listened-to webcaster, the division simply wasn’t profitable. More recently, Microsoft’s MSN cut the lights on its Pandora-powered service (see RAIN here). And lately, Pandora has publicly stated that they won’t be around in the long haul without significant royalty relief (despite reported revenues of $25 million) (in RAIN here). All the while, Dave Oxenford (pictured), in Broadcast Law Blog, points out, there’s still been no real negotiated settlement with small webcasters. So, “while SoundExchange has claimed that the rate arrived at last year is fair and that the industry is growing even with the rate, who is paying it other than a few broadcasters who can run the service has an adjunct to their broadcast service as more or less a loss leader?” Oxenford asks. “And what will happen when the rates rise by another 20% next year?” Read his full blog post here.

EMMIS INTERACTIVE PARTNERS WITH LINCOLN FINANCIAL MEDIA: Emmis Interactive reportedly will provide Lincoln Financial Media’s Web sites with “sales and technology services.” The former, a subsidiary of Emmis Communications, assists radio stations successfully transition online. Lincoln Financial Media’s sites in Atlanta, Denver, Miami and San Diego will receive Emmis Interactive’s help through the content management system called BaseStation, which provides information on “audience behavior and advertiser return on investment.” For more, read Radio and Records’ coverage here.

REJECTED FROM FM, STATIONS TURN ONLINE: Two stations, shut-out of terrestrial airwaves, will see if the Internet proves to be a viable alternative. When Energy 92.7 FM shut down in 2003, three fans decided to bring the “high-energy dance music” the station broadcasted back to life online. They launched Fusion Radio Chicago, a streaming webcast which reportedly is now “the Chicago area’s No. 1 online radio station and is ranked 95th in the world.” The Chicago Sun-Times has more coverage on the site here. Meanwhile, a Canadian community radio station called BIG FM, after failing to obtain an FM broadcast license from the CRTC due to pressures from larger stations, is turning online. While exclusively Internet-based radio stations are reportedly rare in Canada, BIG FM looks to the success of U.S. net stations for support, hoping to begin broadcasting community-based online programming as early as next month. More on BIG FM can be found here. Leaders in both initiatives expressed frustration with terrestrial radio, and hope they provide a home for listeners who feel the same way.

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