Comments on: Save Internet Radio And Give Songwriters The Shaft (Again) http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/ Trouble Ain't Over Tue, 06 Jan 2009 07:20:23 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Tim Westergren http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/comment-page-1/#comment-2049 Tim Westergren Tue, 15 May 2007 21:06:06 +0000 http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/#comment-2049 Hi All - Great that you've raised this issue. It's vitally important, and easy to misunderstand. As a long time musician myself, I'm absolutely committed to paying artists fairly. For another webcaster perspective, Pandora is one of the largest. We're far from profitable, but hoping to get there in the next 1-2 years. We have 15 full time people working just on building the ad business. It was a challenge at the old rates. At the new rates, we're done - the numbers just don't add up. So on the surface, a higher rate sounds like good news for artists, but as John says, not if it puts webcasters our of business. The rate has to strike a balance. Pay musicians an equitable percentage of the revenue, and allow enough business potential for the overall industry to grow and flourish. I don't think anyone would argue that it's fast becoming the lifeblood of indie music. Cheers. Tim (Founder, Pandora) Hi All -

Great that you’ve raised this issue. It’s vitally important, and easy to misunderstand. As a long time musician myself, I’m absolutely committed to paying artists fairly.

For another webcaster perspective, Pandora is one of the largest. We’re far from profitable, but hoping to get there in the next 1-2 years. We have 15 full time people working just on building the ad business. It was a challenge at the old rates. At the new rates, we’re done - the numbers just don’t add up. So on the surface, a higher rate sounds like good news for artists, but as John says, not if it puts webcasters our of business.

The rate has to strike a balance. Pay musicians an equitable percentage of the revenue, and allow enough business potential for the overall industry to grow and flourish. I don’t think anyone would argue that it’s fast becoming the lifeblood of indie music.

Cheers. Tim (Founder, Pandora)

]]> By: TOM http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/comment-page-1/#comment-2047 TOM Tue, 15 May 2007 17:25:15 +0000 http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/#comment-2047 I listen on pandora and I love it...I wouldn't want it to hurt the artist but I could care less for the Record Corporations. I listen on pandora and I love it…I wouldn’t want it to hurt the artist but I could care less for the Record Corporations.

]]> By: John http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/comment-page-1/#comment-2046 John Tue, 15 May 2007 16:05:59 +0000 http://pribek.net/2007/05/14/save-internet-radio-and-give-songwriters-the-shaft-again/#comment-2046 Some clarifications to help you sort through the legalese. I run a small Net Radio station. I raise about $1200 a month in donations. That get spent on hosting ($800), Songwriter/Composer Royalties ($120), Artist/Label Royalties ($120) and whatever remains is spent on more music. As you can guess, it's not exactly a money-maker. If I break even, I'm delighted. The songwriter/composer royalties are not part of this decision. It's SoundExchange, who collects money for the labels and performers, that's the issue here. Under the new rates, my $120 a month payment to SoundExchange would jump to $3000 a month. That's an increase of over 2,000 percent and there is absolutely no doubt that I would be forced to close. My station's nowhere near big enough to attract advertisers, and I can't raise that kind of money from 200 listeners. Again, the songwriter/composer payments would remain the same. It's the record labels that benefit from this rate hike, although you have to question how much they really would benefit. Dead webcasters pay no royalties. Thanks for bringing attention to this issue - it's an important one for music lovers and creators alike. Some clarifications to help you sort through the legalese. I run a small Net Radio station. I raise about $1200 a month in donations. That get spent on hosting ($800), Songwriter/Composer Royalties ($120), Artist/Label Royalties ($120) and whatever remains is spent on more music.

As you can guess, it’s not exactly a money-maker. If I break even, I’m delighted.

The songwriter/composer royalties are not part of this decision. It’s SoundExchange, who collects money for the labels and performers, that’s the issue here. Under the new rates, my $120 a month payment to SoundExchange would jump to $3000 a month. That’s an increase of over 2,000 percent and there is absolutely no doubt that I would be forced to close. My station’s nowhere near big enough to attract advertisers, and I can’t raise that kind of money from 200 listeners.

Again, the songwriter/composer payments would remain the same. It’s the record labels that benefit from this rate hike, although you have to question how much they really would benefit. Dead webcasters pay no royalties.

Thanks for bringing attention to this issue - it’s an important one for music lovers and creators alike.

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