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Internet and Satellite Radio

The beauty and the brilliance of newfound advances in radio have inspired and reignited listeners. Just when radio was losing out to television, DVD's and video games, Internet and satellite radio opened entirely new vistas. But the future of these advances may be in jeopardy. On Monday, the Copyright Royalty Board, or CRB, turned down all the rate appeals that it had agreed to review, from Internet radio stations, and stood by its original ruling...

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By Celia Hirschman • Apr 18, 2007 • 4m Listen

The beauty and the brilliance of newfound advances in radio have inspired and reignited listeners. Just when radio was losing out to television, DVDs and video games, Internet and satellite radio opened entirely new vistas. But the future of these advances may be in jeopardy.

Copyright Royalty Board, or CRB, turned down all rate appeals that it had agreed to review from Internet radio stations, and stood by its original ruling.The new increased rates will affect tens of thousands of listeners. Many Internet stations will be forced out of business, and quickly. They must pay royalties based on the new rates for 2006 by May 15 or face extremely high fines. The Internet stations are now planning to appeal to the Courts and to try and persuade Congress to override the CRB’s decision with new legislation.

Accuradio, radioio, and Somafm, along with large Internet networks like Pandora, Live 365 and AOL.

CRB decision, Internet radio will pay record high royalties to musicians. To artists, that might sound great, but further investigation underscores the unfairness. None of these rates are based on Internet radio revenue. Many of the smaller webcasters run marginal operations. The creators were motivated by their passion for music, not profit. They are the radio stations that provide the diversity on the Internet. If you want to hear blues, ambient, ragtime, African rhythms, Spanish flamenco or any number of the hundreds of genres of music, Internet radio provides just that level of diversity. Another important reason the rates are unfair is that these stations will pay far more than terrestrial broadcast radio. That’s because terrestrial broadcast radio pays absolutely no sound recording royalties. Why should Internet radio stations carry the burden of the industry and be forced to pay such high rates? It serves no purpose to force these adventurous Internet outposts off the air.

satellite radio merger at the moment.

Anti-Trust panel to hear arguments for and against the merger of XM and Sirius. Some may have thought the union of these titanic satellites was a slam-dunk, but it appears, the marriage could still be called off. Speaking against the proposed merger, the head of the National Association of Broadcasters, argued that the merger would create “a government-sanctioned monopoly.” He’s right.

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    Celia Hirschman

    Host of On the Beat

    Culture