AP reports on the failure of talks to outline principles for the copyright treatment of broadcasting and webcasting.

posted by Solveig Singleton @ 9:13 AM | International , Internet: P2P, Search Engines... , Radio

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One decree puts smaller web radio ventures out of business. Now another decree would put them back in.

Which one is "right?" The one that gives you market pricing, of course. If in the presence of a market, the little stations would be in business, then that is "right." If not, well, then, consumers and other ventures are better off if the investments in web radio went somewhere else instead. Okay, well, which one is that? Really no way to tell in the absence of a market. Which the legislation in question does absolutely nothing to further. (Arguably, sadly, the formula that would put them out of business is probably on the right track, as the earlier formula is pretty close to free-riding).

Continue reading The Web Radio Mess . . .

posted by Solveig Singleton @ 9:30 AM | Internet: P2P, Search Engines... , Legislation and Legislators , Markets: Business, Investment & Innovation , Prices, Terms, and Licensing , Radio

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Most of the press coverage of the recent determination of royalty rates for Internet radio has been of the "Internet babies to be strangled" school.

SoundExchange begs to differ:

The review of 2006 webcasting royalties paid SoundExchange shows that 82 percent of royalties were paid by the 10 largest webcasters, which make up 4 percent of all paying services. In contrast, small webcasters paid less than 2 percent of all royalties paid SoundExchange.

“Not only is Internet radio not going to die,” said Simson, “it’s going to continue to flourish. The statistics show it is a vigorous business dominated by large businesses that can easily pay fair market rates while also having room for small webcasters and niche services.
. . . .
[W]ebcasting is growing dramatically and it becomes unconscionable that these huge businesses are not willing to pay artists and labels their fare share for the product that is the engine behind their businesses.

Continue reading Internet Radio . . .

posted by James DeLong @ 9:36 AM | Internet: P2P, Search Engines... , Radio

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Adam Thierer looks at the proposed merger and at the arguments that it should not be allowed because the companies constitute a separate market from terrestrial radio and other devices. He concludes: "I just don't understand how anyone can honestly believe that satellite radio, terrestrial radio and digital music are not in fierce competition for our ears."

I agree. Besides, when the main opponents of a merger are firms that say that they are not in competition with the proposed partners, it seems that one has just proven that they are in competition.

posted by James DeLong @ 3:27 PM | Radio

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The House Judiciary Committee:

announced today that its newly formed Antitrust Task Force will hold a hearing titled, "Competition and the future of Digital Music," which will focus on the proposed XM-Sirius Satellite Radio merger. The hearing will be held on the afternoon of Wednesday, February 28, 2007 at 3 pm. Mel Karmazin, CEO of Sirius Satellite Radio, will testify. Additional witnesses are to be determined.

posted by James DeLong @ 2:09 PM | Radio

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As noted last week, a Federal District Court rejected XM's contention that the Audio Home Recording Act insulates it from liability for copyright infringement for the services offered in connection with its new radios, which have not only a 50-hour recording capacity but an ability to find and record music that is not listened to.

The opinion is here.

The key point: The AHRA may immunize the seller of a home recording device, but this cannot be stretched to encompass a whole panoply of other services offered in connection with the device.

The case will be appealed, but it is a very solid opinion. Much as I love my XM, the company should settle this dog. I don't have one of the new radios -- mine is an old My-Fi -- but if I want this added functionality, and I do rather covet it, then it is completely fair that I pay more for it, and that some of the money go to the copyright holders.

posted by James DeLong @ 10:23 AM | Radio

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TCSDaily asks: "After nearly five decades of futility, will Congress concede that a market will—and ought to—continue to exist for radio airtime, as it does for many analogous resources?"

The point is that radio exposure is a scarce and valuable resource, and if people cannot acquire it by open market transactions then they will acquire it by murkier methods. Furthermore, these substitutes are not efficient. Advertising theory is quite contrary to the "brainwashing" views that characterizes most inane commentary; on the whole, a hit cannot be manufactured -- the dogs must like the dog food -- so a heavy advertising budget is a good use of money only to bring to people's attention something they will like once they learn about it. A heavy ad budget is a good signal that the producer honestly believes in the product.

Continue reading A Cheer for Payola . . .

posted by James DeLong @ 8:35 AM | Radio

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I love Steven Pearlstein's columns in The Washington Post; he's particularly good on trade and international business issues. So I was a little disappointed with today's column on the XM-RIAA suit, in that it oversimplifies the issue. (For a more complex discussion of the topic, see the transcript of our recent Congressional Seminar on the subject). Mr. Pearlstein then conducted an online chat on Washingtonpost.com, and while he didn't accept my question on the Audio Home Recording Act and how it fails to adequately compensate artists with its ceiling and easily avoided tariffs, he did make some statements there that were more agreeable. Still being in a good mood from my recent trip to the Jersey shore, I'll focus on the positives:

Continue reading XM, RIAA and WaPo . . .

posted by Patrick Ross @ 12:37 PM | Access: Commons, Fair Use, Orphan Works, Public Domain , Free Culture Movement , Radio

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As expected, XM has filed to disimiss the RIAA lawsuit on the ground that its activities are covered by the Audio Home Recording Act.

For discussion of the issues, see the transcript of our recent program on The Role of Music Licensing In a Digital Age

posted by James DeLong @ 8:06 AM | Radio

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Chris Castle, an entertainment lawyer who was part of the recent PFF seminar on The Role of Music Licensing in the Digital Age examines the RIAA/XM/Inno radio dispute.

He is gloomy (or, given his perspective, optimistic) about XM's prospects of winning the litigation, and, given the heavy penalties of copyright law, the impact on XM could be serious.

He prays the matter settles, as do I. These companies all need each other, and they should be able to craft business arrangements that reflect their respective capacities to contribute to the music biz.

posted by James DeLong @ 8:42 AM | Radio

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posted by James DeLong @ 12:06 PM | Radio

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posted by James DeLong @ 12:33 PM | Radio

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posted by Patrick Ross @ 11:40 AM | DRM & Watermarks, etc. , Legislation and Legislators , Radio

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posted by James DeLong @ 2:04 PM | Radio

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posted by James DeLong @ 7:11 AM | Radio

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