 RAIN 3/2: Evaluating NAB/SoundEx deal: Good business, or disaster? ·Mar 2, 11:07 AM EXPERTS’ TAKES VARY ON WISDOM BEHIND NAB’S SETTLEMENT WITH LABELS The NAB and SoundExchange agreed to a webcasting settlement last month (RAIN coverage here) that discounts rates for commercial broadcasters for this year and next. The NAB will also avoid the legal fees associated with a settlement  for the next term by agreeing to a rate hike for 2011-2015. And in a related settlement, the parties agreed compliant broadcasters would enjoy a significant relaxing of the “sound performance complement” of the DMCA that put restrictions on programming online. So, good idea, or disaster?
THIRD PARTY SIRIUS IPHONE APP DELAYEDThe Motley Fool reports the uSirius StarPlayr (read previous RAIN coverage here) — a third-party Sirius XM iPhone app — has not been approved by Apple for inclusion in the iPhone app store, and there’s no indication as to when (or if) it will be. It’s possible, of course, that it’s Sirius XM itself that’s holding up the process. “The company can milk its satellite radio model through automakers for a few more years, but in cyberspace, it’ll have to play by a different set of rules,” writes the Motley Fool. “Instead of a walled garden, Sirius XM should be building brand equity in its proprietary channels by inviting free exposure… And even if the company doesn’t want to spend time and effort on such a strategy, why not let third-party developers do the heavy lifting?” Read the Fool here.
SIRIUS CANADA WANTS ISPs, MOBILE CARRIERS TO PAY FOR B’DCAST RIGHTS TOOCanadian broadcasters, including satellite broadcaster Sirius Canada, are required by the government there to support Canadian artists not only by playing a minimum percentage of Canadian content, but through financial contributions to a fund supporting Canadian artists. Sherry Kerr, VP and general counsel for Sirius Canada Inc., says ISPs and mobile carriers should do the same, since they profit from Internet radio. The CBC paraphrases Kerr: “Internet radio is a direct competitor and a serious threat to satellite radio, especially now that it is becoming increasingly available on portable wireless devices and even some devices that can be built into the dashboard of a car.” Kerr’s only support for the financial health of Net radio, apparently is “an increasing number of articles in the press opining that internet radio is a category killer and the category that it would kill would be ours.” She suggests that ISPs cut off Canadians’ access to webcasters that don’t adhere to Canadian content regulations. Read more in CBC.ca here.
PERFORMANCE RIGHTS ACT WILL GET WEDNESDAY HEARINGThe House Judiciary Committee has scheduled a hearing on the Performance Rights Act for Wednesday at 10am ET. The Performance Rights Act would require broadcasters to pay labels and performers a royalty for the use of music in over-the-air broadcasting. House Judiciary chairman John Conyers (D-MI) and Rep. Darrell Issa (R-CA) are the bill’s sponsors. A similar bill is backed in the Senate by Sens. Patrick Leahy (D-VT) and Orrin Hatch (R-UT).share: del.icio.us.  Reddit  Digg  Yahoo  Wink  Windows  Google  Newsvine 
Comment Other stories RAIN 9/2: Apple makes iTunes experience more social, more "radio-like" RAIN 9/1: FilterMusic.net excels at helping you discover new streams RAIN 8/31: Pandora's Les Hollander to speak at RAIN Summit East RAIN 8/30: Former Forrester analyst to deliver second keynote of RAIN Summit East RAIN 8/27: Radio vet Bill Gamble to consult AccuRadio's country stations RAIN 8/26: Clear Channel's digital chief Evan Harrison to leave at end of year RAIN 8/25: Pandora spotlights improved "genre-based" listening options RAIN 8/24: NAB presents details of proposed royalty settlement to members RAIN 8/23: Mobile media growth will even outpace Internet, predicts Nielsen RAIN 8/20: New deadline for Internet Radio Awards is August 31 |
Industry expert Bob Bellin is not optimistic. He commented on 
Former Katz Net Radio Sales president Jennifer Lane, on her Audio4Cast blog, cuts the 
It’s lots different in the eyes of former radio programmer and now an industry observer/blogger John Gorman. “Radio got screwed,” he writes. “The world is migrating to the Internet. Radio’s only rescue is to create content that will translate to on-line listening as we move toward this inevitable great convergence… but when you tack on this royalty charge, no chain or station will win. Radio will be held hostage by the labels and will end up like most hostages – dead.” Read Gorman 
I think John Gorman is right here.
The concessions that radio got in this deal aren’t close to enough to allow streaming to be a break even effort, much less profitable. In some ways, that’s worse than nothing, because you can only go to the well so many times without looking like a crybaby.
Point of fact, this deal may have sealed radio’s fate for good. Absent a royalty structure that can result in a viable webcast business, radio is facing a future with less audience, less revenue as a result and further cuts in product quality as a consequence. This will lead to more audience defection, further revenue losses and more cuts. It’s pretty easy to see where this is going.
My Dad once told me that any business agreement where both sides don’t make out is a swindle, not a deal.
The RIAA swindled the hapless NAB.
— Bob Bellin · Mar 2, 02:48 PM · #
I actually agree with Jennifer Lane on this one. Congress and the courts were not going to step in and save broadcasters (see the last article in this issue on what Congress actually wants to do). Under the circumstances, I think it was probably the best deal broadcasters could get.
— ted chittenden · Mar 2, 07:03 PM · #
The House Committee on the Judiciary has an uphill battle to establish parity between broadcasters and webcasters. Here is a background piece my organization put out on the issue
— Daniel Castro · Mar 4, 03:12 PM · #