Numerous disparate parties have come together to help design the messaging for the SaveNetRadio.org website, including DiMA members, the Small Commercial Webcasters group, many NPR stations, musicians, and many independent labels.

The messaging is very intentionally something that all affected groups should be able to support — including broadcasters!

To be clear, this is not an isolated group of of DiMA-member companies or smaller Internet-only webcasters saying, "Broadcast radio bad, Internet radio good."

We’re also not using the "level playing field" argument — i.e., that broadcasters should pay a sound recordings royalty for their AM, FM, and HD streams.

Rather, we’re saying that Internet radio is a vast treasure trove of options, including Internet-delivered streams of terrestrial radio stations, Internet-only "B" channels from terrestrial radio stations, big portal sites, small hobbyists, and everything in-between — and that all of those options are at risk due to these excessively high royalty rates.

Broadcasters’ stake in the fight
Some broadcasters may believe that a shutdown of Internet radio is good for them. That’s not true for two reasons:

• If U.S.-based Internet radio goes away, listeners will simply find other alternatives — i.e., webcasters based in Canada or Europe or Australia. (If Pandora dies, its listeners won’t go back to Mix 107.9 FM; they’ll simply go to UK-based Last.fm.)

• From a stock price (and value) point of view, note what analysts are saying: Radio revenues are flat. Radio’s best opportunity for growth is to get a piece of the large and growing interactive ad segment — and the only way for that to happen is for radio to actively compete in the Internet radio space, which they won’t be able to do effectively under these rates!

Broadcasters may be concerned that supporting Internet radio may open up the question of sound recordings performance royalties for over-the-air radio. But that issue is already open! SoundExchange has made it clear for years they’re going after terrestrial radio next. Standing on the sidelines in this fight isn’t going to stop that development from happening.

Here at RAIN, we urge broadcasters — and, ideally, the NAB! — to step up and support this effort actively. Both PR-wise and long-term business strategy-wise, it’s the right thing to do.

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