All Good Things… July 14, 2007Posted by Jim Satterfield in Does Not Compute, Technology.
Tomorrow the chances that anyone has to simply start up an internet radio station with next to no start up money and be able to take time to build up an audience will end. As written about on DailyTech as well as other sites the new fee increases pushed for by SoundExchange take effect. I’m not going to go into a major rant on this but just think. There are already stations shutting down because these fees are just that, flat amounts that have nothing to do with audience size or revenue stream of the station. According to an official with SoundExchange
“This is just about the artists getting paid fairly. Artists and labels just want a fair share of the pie,” said Richard Ades, a SoundExchange representative.
If that was really their goal wouldn’t they be working with the stations to base the fees on income? But in fact SoundExchange has refused to consider that as an option. So if I started a station and only had about a thousand listeners and only enough ad revenue to cover expenses I would be expected to pay the same as someone who had backing from a large company, many thousands of listeners and an actual net profit in the thousands of dollars. I just don’t see any honesty on the part of the music industry. Again.
This is a much more detailed FAQ from CNet. There is in fact a per listener fee and a flat fee. This is still considered unfair by many including myself because it bears no resemblance to what is paid by satellite radio, perhaps the closest to internet radio in terms of where it’s at concerning the general public. Satellite radio pays 7.5% of revenues to SoundExchange.