 GotRadio's statement to the Senate Judiciary Committee ·Jul 31, 11:19 AM  4117 Elverta Road #102-290 | Antelope, CA 95843 Respectfully submitting this statement for the Record of the July 29,2008 Hearing on “Music And Radio in the 21st Century: Assuring Fair Rates and Rules across Platforms, U.S. Senate Committee on the Judiciary. My name is Val Starr, and I’m the founder and owner of GotRadio.com. GotRadio was launched in February of 2003. We are a professionally programmed network of internet radio stations, and are a premier content provider for Windows Media and Itunes. We currently have an estimated 250,000 monthly listeners, averaging over 1 million listener hours per month. GotRadio’s programming philosophy is to not niche down to hundreds of radio formats; however, we do feature many channels that have never been available to listeners on terrestrial radio. These channels have quickly become some of our most listened to channels. Music channels such as our blues, bluegrass,, soundtracks, musicals, new age, folk, big-band and classic country offer promotion to music artists and direct music buys for listeners in these music categories that have never before in history been available to them. Our indie rock channel provides exposure to the scores of unsigned and non-major label music product. Internet Radio is opening the doors to music artists that were all but ignored by traditional radio and is opening the ears of listeners across the country. Unfortunately, due to a flawed standard in the DMCA, as well as the subsequent Copyright Royalty board decision, which was unduly influenced by the lobbying and legal power of the R.I.A.A., internet radio is very much in danger of being strangled to death by misguided and miscalculated performance royalties. As you are aware, terrestrial radio currently pays no royalties for its sound recording performances. At present, cable and satellite radio pay approximately 7.5% of their revenues for their performances. However, despite the repeated request of Internet Radio to pay a similar royalty rate based upon revenues, our rate was set on a per-performance basis, which when calculated out, raised the current Small Webcasters rate of 10% by 75% to 200%! I have personally flown out to New York City, on my dime, and at the request of the Sound Exchange. I have met with their board members and have opened up my company books freely. I have provided concrete proof that under the current rates my current yearly royalty payment, which amounts to around $20,000.00 will increase as follows. Please note that this is assuming that I have no increase in listenership over the next 4 years: For the past three years, the Small Commercial Webcasters have been trying in good faith to negotiate a fair royalty rate with Sound Exchange. My letters to Sound Exchange asking for open negotiations remain unanswered. We are continuously harassed and rebuffed by the SoundExchange, and despite their assurances to congress that they would negotiate in good faith, I do not know of a single webcaster that has been approached by Sound Exchange to negotiate, including GotRadio. I would urge the Judiciary committee to consider the disastrous consequences that have resulted from the current Internet Radio royalty requirements before extending an additional performance royalty to any other form of radio. I would further urge that the Judiciary Committee consider the revenue share rate that is currently in place for cable and satellite radio as a starting place for fair “across platform” rates for all digital music transmissions and to deem the per-performance rate an “unfair and unreasonable” rate based upon the current economic conditions of our industry. Internet Radio’s continued lifespan will ensure the continued exposure of a world of yet to be discovered music and talent to our country’s citizens. I urge you to help to assure FAIR rates and rules across ALL platforms of digital transmissions. Sincerely, Val Starr, Founder share: del.icio.us.  Reddit  Digg  Yahoo  Wink  Windows  Google  Newsvine 
CommentCommenting is closed for this article.  Other stories RAIN has upgraded (and moved)! RAIN 9/13: RAIN Summit Chicago takes place today! RAIN 9/12: First Summit in RAIN's hometown takes place tomorrow RAIN 9/9: Summer holidays, "doldrums" impact July Webcast Metrics, but audience up over last year RAIN 9/8: Clear Channel launches new customizable iHeartRadio beta; RAIN goes hands-on RAIN 9/7: Meet more speakers you'll hear at RAIN Summit Chicago in less than a week RAIN 9/6: Clear Channel taps The Echo Nest to take on Pandora RAIN 9/2: RAIN reviews Spotify's radio-like product Artist Radio RAIN 9/1: UK online radio aggregator Radioplayer campaigns b'dcasters to create "all radio" ratings RAIN 8/31: Execs from Merlin, Triton Digital, jacAPPS and more to appear at RAIN Summit Chicago |
wow great letter, makes sense to me. love your writting i really hope congress can see how ludacris this tax is for Internet Radio.
— Jay from Kansas · Jul 31, 02:06 PM · #
Nothing like a former record promoter to know where all the bodies are buried. You should be using her more for your fight. I don’t see you using anyone with knowledge whose either a former record label exec or promoter and that, I see, is part of your problem when fighting for your very existance.
— Former Label Rep · Jul 31, 03:40 PM · #