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Thursday, May 15, 2008 We're Back

SoundExchange has ignored a Congressional directive and wasted 8 months pretending to negotiate with commercial webcasters while feigning interest in finding a solution that would keep webcasters in business. Time and patience is in short supply so…We’re back.

For seven months, SaveNetRadio has been repeatedly asked three questions by reporters, Congressional staffers, and the average Net radio listener:

1) So what’s going on with negotiations?

2) I thought webcasters were going off the air in July if they didn’t reverse the royalty decision – what happened?

3) Now what?

We are happy to report that we can finally answer those questions, so lets take them in order:

1) What’s going on with negotiations?

As you know, after more than 2 million phone calls were made to Congress by SaveNetRadio supporters and 150 Members of Congress signed on in support of legislation that would level the playing field for webcasters – the Internet Radio Equality Act – House Commerce Committee Chairman Markey (D-MA), directed SoundExchange to negotiate with commercial webcasters in good faith, and to come to a solution. That was in July of last year. Since then, little has changed. The offers made by SoundExchange continue to be between 3 and 4 times as high as the rates they charge cable and satellite radio providers and significantly more than webcasters can pay and stay in business. To sum it up – its been a year and all we are is a year older. The CRB’s irrational and unjustifiable decision has given SoundExchange the leverage it needs to extort unreasonable fees from an industry that simply cannot pay them, and without Congressional action and oversight, they do not seem interested or even willing to explore actual solutions.

Which brings us to our next question...

2) I thought webcasters were going off the air in July if they didn’t reverse the royalty decision – what happened?

The decision to continue broadcasting or close up shop is an individual one and SaveNetRadio would certainly not presume to know what was best for any webcaster. That said, the first year of the CRB’s mandated rate increase was nominal for most webcasters and the difference in rates paid by webcasters is being held in escrow and could be returned if/when a solution is reached. If nothing else, this is cause for optimism or at the very least, hope for webcasters and the majority have chosen to stay in business and fight.

And lastly…

3) Now what?

If two million phone calls couldn’t get the attention of SoundExchange or persuade Congress to act, maybe two million more will do the trick. Senator Sam Brownback of Kansas will be offering the Internet Radio Equality Act as an amendment to an intellectual property bill in the Senate Judiciary Committee tomorrow, many of his colleagues and fellow Internet radio supporters in the House and Senate stand ready to voice their support for the industry and the campaign on the floor of Congress, in the press and most importantly, in committee hearing rooms. It is time the Internet Radio Equality Act is given a hearing in Congress. Net radio supporters should demand that their voices are heard.
posted by Brendon Silver  # 8:57 AM

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