Good news in the battle to save internet radio, sort of. The private nonprofit group that collects royalty fees for record companies has offered to allow small webcasters to keep things pretty much as they are now (ZDNet - Music industry offers deal to small Webcasters):
SoundExchange, the nonprofit group that collects the fees on behalf of hundreds of major and independent record companies, said on Tuesday that it would give "small" Webcasters the option of paying "below market" royalty rates on the songs they play--that is, by keeping the required royalty rates essentially the same as they are under a 2002 law called the Small Webcaster Settlement Act.
Is this really good news? Or, is this a great illustration of a "divide and conquer" strategy? Is this really a market-based solution? Does it make sense to create policy that encourages businesses to stay small and not grow? One might say that such a policy is anti-market. Why is a private nonprofit group allowed to make policy in the first place? I think that what we are witnessing here is a music industry that is afraid of the legislation before Congress and they are attempting to settle the matter before the people and their elected representatives vote on it. Finally, and just to promote net radio, I'm listening to SomaFM as I write this.
Why does this issue matter to me and to so many others? This report (metroactive - Cutting Off The Air) sums it up nicely:
Why, one might wonder, are the grassroots ringing their senators' and representatives' phones over something as seemingly trivial as online music, when the war in Iraq continues to rage, when the genocide in Darfur shows no sign of ending, when climate change threatens to turn San Francisco into a sandy little island? It turns out it's not trivial at all—it has to do with the culture and texture of our lives.
"I think people want control," says Laurie Joulie. "I think they see in all facets of their lives that corporations have had too much control—over what they watch on TV, over what they hear on the radio, over what the politics of the country is. And I think they just want to take control back."