Harmed Copyright Holder Speaks Out
In my March 14th posting, I argued that the new royalty rates will, in fact, be harmful to artists and copyright holders whose works are less than famous or who focus on specialty genres by making it uneconomical for webcasters to play anything other than music which appeals to the widest and lowest common denominator. The result will be that such artists and recordings will be priced out valuable Internet radio airplay the same way that they have been priced out of AM/FM radio airplay for decades.
Well, it is not just some sour grapes webcaster saying this - one such copyright holder very nicely makes the exact same point. His name is Chris Thomas and he is the founder of Palo Duro Records, a small independent country label which focuses on Texas-based artists.
In an excellent posting to his blog, Thomas explains that, while he will be one of those collecting the higher royalty rates, the overall impact for his label will be negative as a result of the loss of the considerable exposure it receives from Internet radio airplay:
"Palo Duro has had the honor of having multiple projects in the Top 10, Top 5, and even #1 airplay position at many webcasters — something that, frankly, will never happen on a major-market terrestrial radio station. So while we technically have the most to gain economically from the new fee structure, the real-world effect will be just the opposite - webcasters that specialize in the cool and eclectic will simply disappear, and music fans everyone will return back to the stale 80s format and the same ten songs on your semi-local Hot Country favorite."
(Emphasis his)
As I mentioned in my previous posting, the task of the judges on the CRB was to look out for the best interests of all copyright holders - not just the desire on the part of the major labels to maintain their dominance and thwart emerging competition by means of bought and paid for legislation and governmental decrees.
Mr. Thomas also warns"
"This irresponsible government policy will push a tremendous growth opportunity and potential economic boom for the music industry to offshore locations immune to, and even defiant of, artist/label rights."
Indeed. Keep in mind that the webcasters who are impacted by this are those who choose to play by the rules and who pay royalties. The new rates will have no impact at all on the many pirate stations that are out there - except, of course, for the possibility that they may end up with lots of new listeners on their hands once the honest and legal broadcasters are forced off the air and into bankruptcy.
Mr. Thomas ends by saying:
"I’m angry. You should be, too."
I, of course, agree - except for the fact that "angry" is too mild of a word for what I think and feel about it.
Posts
