Ouch. American greed punches the little guy in the gut.

Oh, by the way, next up on the agena is iTunes.

The RIAA is hellbent on getting the price per song up over .99 particularly for established artists.

They think they're leaving too much money on the table right now.

Cutting their own throats I tell ya.

Surf Myspace.  Artists are happier selling 50,000 CD's at $7 profit per disc than going through the hassles of a label and selling 500,000 CD's for .50 cents a disc.

The big time music industry companies will be in shambles ten years from now.  Mark my words.  I bet in the next five years your going to see a lot of mergers and a lot of bankruptcies.

There's also still a very faint glimmer of hope with the whole royalty situation too.

There are groups trying to convince the labels to do a percentage of profit charge, and they still hope that despite this decision the labels may be willing to go that route (using the current new standard as leverage).

So we'll see.

I was just reading that these rates only apply to the performance aspect.  They still have to address the PUBLISHERS end of it all!

It looks to me like if things keep going in this direction, the "unsigned" independent artists who still have control of their own content will be the best off. They will be able to sell (or give away) their music however they want.

Now if only there was a service available to help independent artists handle their cd copying, internet sales, and distribution . . .

WebGuy wrote:

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It looks to me like if things keep going in this direction, the "unsigned" independent artists who still have control of their own content will be the best off. They will be able to sell (or give away) their music however they want.

Now if only there was a service available to help independent artists handle their cd copying, internet sales, and distribution . . .

---

Hmmm...

If only...

They have not JD, but this is HOT off the presses.  I imagine they'll be bringing it up in their next monthly newsletter.

I read an article yesterday that specifically discussed Live365 and the very real possibility this will be the end for them.  The article said they couldn't possibly have imagined royalty costs increasing 200% in such a short time when they set their pricing structure up.

More than likely if this actually isn't stopped at some level we'll be done within the next 12 months.

The only way Live365 could stay alive is by catering to the PRO broadcasters that actually manage to bring in enough revenue to cover increased costs.  But guys like us are definately squeezed out.

I mean, think about it.  If we averaged 100 listeners, which is a VERY modest goal, we'd be paying about $90 a day to broadcast.  Meaning we'd have to probably sell about $125 a day in advertising just to break even.  Now how much do you think an advertiser is going to be willing to pay to hit only 100 listeners?  MAYBE $2 a day.  It just doesn't work with small and midlevel broadcasters.

This sucks.  I can't beleive they're being so stupid again.

Does it involve a coupla hot girls, a plastic swimming pool full of jello and you having to work resulting in me being left alone with the girls?!??!!?! 

Snippets from the Live365 forum...

---------------------------------------

I'll have to get a lowdown with the legal folks once I'm back from
vacation. Don't panic just yet, this is something that biz folks have
been looking at for a while..

however, the decision is quite disappointing, but believe it or not,
RIAA's orginal target was thirty percent.
_________________
Live365 Systems Administrator

-----------------------------------------

More info (and some very alarming calculations!) on this site that has been setup to try and get the word out about and fight these changes:

http://www.save-internet-radio.com/2007/03/02/save-internet-radio/

A station with 1000 continuous listeners would owe over $150,000 in royalties for 2007, and almost $250,000 by 2009. Plus the new rates are effective retroactively to the beginning of 2006!

------------------------------------------

JD The Jazz Doctor wrote:

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F$&#ers.

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 Ruby gives you permission to cuss and no soap!

We'll be knocking people over the head the next few weeks with PSA's from that organization Lady Strange.

I hope everyone will not mind too much, but we're gonna blanket our airwaves to get the word out, running a PSA every 40 minutes or so

There is one on their website MZ.

MzHartz wrote:

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Anyone here good at letter writing?  We could write a letter that listeners just have to print off, sign, and send.

---

That would be awesome!  Maybe change a little bit of wording here or there to make it slightly more personal.  Since we're all busy, this would probably motivate more people to join in.  I love this idea!

It was there when I voted:


Re: Do you think this legislation should remain as is? (Score: 1)
by walts on Monday, March 05 @ 13:10:36 CST
(User Info | Send a Message)
Here"s what I sent:

Sent to:
- New York's 3rd district Representative Peter T. King;
- Senator Hillary Rodham Clinton, and;
- Senator Charles E. Schumer

Help Keep Internet Radio Online

March 5, 2007

Dear Senator Schumer:

On March 2, 2007 the Copyright Royalty Board announced new royalty rates for all Internet Radio stations, with the new rates retroactive to January of 2006. These new rates are significantly higher than expected and are many times over what is being paid now. In fact, if they remain unchanged, many or perhaps most online radio stations will have to cease operations after having had to declare bankruptcy due to the retroactive-to-2006 aspects of these new rates.

Internet Radio is treated differently than Terrestrial (broadcast) Radio. While both Internet and Terrestrial Radio pay royalties to BMI, SESAC and ASCAP, when it comes to record labels and artists, Terrestrial Radio pays no royalties -- none at all. It is only Internet Radio stations that must pay royalties to Sound Exchange at a rate is set by the US Copyright Board.

In 2002, Congress passed the “Small Webcaster Settlement Act,” that forced Sound Exchange to offer to small Webcasters a rate based on a percentage of revenue.

Last year, a new round of hearings was held by the Copyright Royalty Board to determine new rates for the 2006-2010 periods. The hearings lasted several months. Then, three judges retired to deliberate and render a decision, which decision was announced on Friday, March 2, 2007. The surprise in their decision was the elimination of the “Small Webcaster Settlement Act.” This meant all small Webcasters could no longer make Sound Exchange payments based on a percentage of their revenues.

The new rates essentially levy a fee of $0.0011 per performance per listener in 2007, escalating to $0.0019 in 2010. Since each hour, the average radio station plays 16 songs, that's about $0.0176 per hour, per listener in 2007. An Internet Radio Station with a 500 listener average would now be required to pay $211 per day, $6,336 a month or $76,000 for the 2007 year!

This amount of money is beyond the resources of the small independent Internet Radio Stations, many of which are run by enthusiasts and hobbyists. These small stations are the ones bringing new music and old favorites to us every day, with their playlist fine-tuned to their listeners’ choices by their listeners themselves. Music like this can not easily be found on the corporate-owned mega stations, Internet or Terrestrial.

As royalty rates were 8% of gross revenues, a $76,000 fee under the new rates equates to gross annual revenues of $950,000 under the old rates. Yet the “gross annual revenues” enjoyed by a station with 500 listeners on average, are more in the $15,000 range; most of which are derived from listener donations with the station run on a “break-even” basis.

To expect these stations to increase their donations five-fold to cover this additional cost in 2007 is folly. To expect them to also “find” over $50,000 to pay the retroactive 2006 fee is more than a little unreasonable.

The Copyright Royalty Board must have known this.

Without your help to repeal this unfair Internet-Radio-only “tax,” re-instate the more equitable Small Webcaster Settlement Act, or perhaps even to extend the “Act” to also include Terrestrial Radio stations, March 2, 2007 will be added to February 3, 1959 as yet another... “day the music died.”

Very truly yours,
Name
Address
Phone Email

Riggs, I was wondering...Has Live 365 or its broadcasters considered using an online petition for its listening audiences? Are they perhaps seeking a little PR coverage on it? I was curious what they might be doing to rally troupes and let the opposition be heard. I know it isn't always effectual, but I would think they'd be considering something to demonstrate the opposing voice with a little more verve.