Recording Industry Soon To Overtake Detroit Automakers And Major League Baseball As The Worst-Run Industry In The Country
Posted by Contrarian on June 26th, 2007
If I could curse on this blog, I would curse about the effin’ record industry:
No, music fans, there isn’t a problem with your Web connection — it’s just that many Internet radio stations are deliberately offline today.
Many Web-based music services and some conventional radio stations that offer Internet audio streams are scheduled to shut off their online music and programming until midnight tonight. Organizers are calling it Day of Silence and are hoping it will focus attention on a royalty-fee increase that many Internet-based broadcasters say could drive them out of business.
The new rates are set to go into effect July 15, barring swift action from Congress.
Participants in the event include such online-only music services as Pandora, Live365 and Real Networks’ Rhapsody, as well as radio stations such as WAMU in Washington and KCRW, based in Santa Monica, Calif. One notable service sitting out the protest, according to organizers, is AOL Radio. A spokeswoman for AOL declined to comment.
Earlier this year, a three-judge oversight panel that is part of the Library of Congress followed the recommendations of a group created by the recording industry to increase online royalty fees when the old rates expire. The group, SoundExchange, distributes royalty payments for online broadcasts to musicians.
SoundExchange said the higher rates reflect the fact that CD sales are collapsing and that the recording industry needs to find new sources of revenue to survive. Although Internet radio stations say they’ve helped music lovers find new bands, resulting in more album and ticket sales, SoundExchange said the recording industry hasn’t seen the trend.
And in the meantime, support your local radio station.
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