RAIN: Radio And Internet Newsletter: RAIN 7/28: Senate Judiciary meets tomorrow to discuss royalties

RAIN 7/28: Senate Judiciary meets tomorrow to discuss royalties
·Jul 28, 12:52 PM
Posted by: Paul Maloney

SENATE JUDICIARY COMMITTEE TO TACKLE MUSIC ROYALTIES TOMORROW: The Senate Judiciary Committee will discuss music royalties “across distribution platforms” on Tuesday. Pandora’s CEO Joe Kennedy, Geffen Records Head of Operations Jeffrey Harleston, performing artists Matt Nathanson and Five for Fighting’s John Ondrasik (pictured right), and SoundExchange executive director John Simson will reportedly testify before the committee. Senator Dianne Feinstein (D-CA) (pictured left) — who introduced the PERFORM Act (S.256) in 2007 that would require satellite, cable and Internet broadcasters to use piracy prevention technology (more here) — will preside over Tuesday’s proceedings. Also up for consideration in the Senate are the Internet Radio Equality Act (S.1353), proposed by Senators Sam Brownback (R-KS) and Ron Wyden (D-OR), that would set “reasonable” webcaster royalty rates (RAIN coverage here and here), and the Performance Rights Act (S.2500), which would charge terrestrial radio broadcasters a performance royalty fee, introduced in the Senate by Judiciary Chairman Patrick Leahy. For more, read the National Journal’s coverage here (under the “Judiciary” heading).

CLEAR CHANNEL, KATZ FORM 1,200+ STATION ONLINE NETWORK: Clear Channel Radio and Katz Media Group announced the launch of a new Internet radio network today, including more than 1,200 Clear Channel and Katz affiliates as well as independent webcasters. The companies say the new Katz Online Network has “the broadest reach and most diverse content of any online audio network,” reportedly delivering 79 million sessions per month to 5 million unique weekly listeners. Clear Channel Radio and Katz Media Group’s AM/FM affiliate streams are joined by independent Internet radio sites, such as RadioIO, FineTune, and AccuRadio. “The Katz Online Network represents the largest and most diverse group of rich media properties in existence today. This, combined with the ability for advertisers and agencies to ‘cherry pick’ their target demo and deliver their message directly to those people, is a truly unique and exceptional formula for success,” said Jordan Mendell, founder and CTO of Ando Media. For more, read the official press release here.

SAT-CASTER MERGER APPROVED: The FCC announced late Friday evening that it approved the merger between satellite radio broadcasters XM and Sirius in a 3-2 vote. Though the decision was predicted last week by The Wall Street Journal (RAIN coverage here), commissioner Deborah Taylor Tate didn’t officially cast cast her deciding vote until Friday evening. The FCC’s conditions for the merger include a 3-year price freeze, a $20 million fine for tower location and power limits violations, making interoperable radios available “within a few months,” and reserving 24 channels for minority groups and public access. For more, read R&R’s coverage here.

JAZZ ARTIST: NET RADIO NEEDS A FAIR ROYALTY SYSTEM: New Orleans jazz clarinetist Michael White (pictured) was in Washington D.C. this past week, lobbying members of Congress to step in and lower the CRB-set Internet radio royalty rates (RAIN coverage here). White revealed that few terrestrial radio stations play his music, but fans often tell him that they discovered him through online radio. “We’re not advocating destroying royalties, but want a royalty system that is fair with comparable media,” said White. His efforts reportedly won the support of Senators Ron Wyden (D-OR), and Sam Brownback (R-KS), who both say they’ll support legislation that lowers Internet radio royalty rates “unless negotiations between SoundExchange and Internet stations are successful.” For more, read Nola’s coverage here.