 RAIN 10/21: Webcasters no match for record industry in arbitration, say experts ·Oct 21, 11:39 AM EXPERTS SAY ROYALTY NEGOTIATION “MISMATCH” LED TO ONE-SIDED OUTCOMEPowerful record labels and SoundExchange outspent and out-strategized webcasters, especially smaller ones,
in webcast rate-setting arbitration proceedings. The result, of course, was the disproportionately high webcast royalty rate. So says former RIAA attorney Gary Greenstein (right), speaking on a panel (along with Pandora founder Tim Westergren) yesterday at the SanFran MusicTech Summit.
“These litigations… cost millions and millions of dollars. SoundExchange is allowed Digital Music News, reporting on the panel, writes, “the process has been anything but equitable and balanced. In fact, a closer look raises questions on whether broadcasters and artists are ultimately getting the deal they deserve.” Read their coverage here. RADIOIO GROUP LAUNCHES MUSIC SERVICE FOR BUSINESSESioWorld Media, Inc., owners of webcaster Radioio, has launched a new service called io4business, to create custom music programming for businesses.
The wholly-owned subsidiary will produce customized background music and messaging systems for businesses, including the ability to sell and schedule in-store advertising to suppliers and vendors. Aaron Brusse will serve as vice president of io4business.
IMEEM BRINGS NET RADIO TO GOOGLE ANDROIDA new application from Imeem for the new Google Android phone platform streams customizable music radio — in a fashion similar to Pandora (which is hugely popular on the Apple iPhone).Wired’s Eliot Van Buskirk writes, “Stations will consist of the most popular and emerging artists, recommendations based on what a user and their friends have been listening to on Imeem and artist-based stations. Stations will be updated not only based on a user’s listening habits but on those of the Imeem community at large.” Read more in his Listening Post blog here. The Washington Post also has coverage here. RADIOLICIOUS APP RELEASED FOR iPHONEAnother Internet radio application is available for the Apple iPhone: Radiolicious. This application not only streams over 6,000 traditional AM/FM broadcasts, but allows users to stream their own stations for a monthly fee. Radiolicious also features interactivity with DJs and song links to iTunes. Find out more at iPhone World here.share: del.icio.us.  Reddit  Digg  Yahoo  Wink  Windows  Google  Newsvine 
Comment Other stories RAIN 7/2: UK's Telegraph says DAB's been a problem; Internet radio "the solution" RAIN 7/1: Obama approves Webcaster Settlement Act of 2009 News Flash: President signs Webcaster Settlement Act of 2009 RAIN 6/30: New York Times picks 7 stand-out mobile radio apps, including FlyCast and Sirius XM RAIN 6/29: Autonet selling in-car Wi-Fi directly to consumers RAIN 6/26: Nielsen study shows radio down, but not out, among teens RAIN 6/25: Google selling ads in mobile apps; FlyCast creates unique WEEI app NPD: "Tweeters" almost twice as likely to listen to Net radio as others online RAIN 6/23: Stern blames rights issues for iPhone snag RAIN 6/22: Dahl to return to radio will daily podcast |
to use the revenue stream that it collects from webcasters to pay its outside counsel… There is essentially an unlimited resource of money…” Greenstein explained. Discussing webcaster litigation strategy, Westergren (below) noted, “On the technology side, there were a bunch of cowboys during the first few years of the technology. 
They brought the wrong attitude to the negotiation, and that was a chapter that upset a lot of people, understandably.” Greenstein concurred, saying, “SoundExchange had very competent outside counsel, they did a good job and I’m not sure that the litigation on the other side really shifted their logic from what didn’t work the first time.”
Why does SoundExchange get to advocate for either side, with the funds that it collects no less? They don’t even know if they represent their constituency…and if history is any guide, artists and the labels are on opposite sides of most issues.
The artists are supposed to be half of SX’s customer base – what if the majority of that base is against using THEIR MONEY to UNDERMINE THEIR WISHES.
No one seems all that consumed with fairness here, but if they ever decide to consider it, SX should not be able to advocate for either side or spend webcasting royalties to do it.
— Bob Bellin · Oct 21, 01:13 PM · #