Well there is no such thing as a free ride when it comes to music, as I explained a few days ago to someone that was interested in starting their own internet radio station.
The misconception that a stream to play music on residing elsewhere is not considered a "station", is essentialy flawed/false. Look at it in basic broken down terms " a stream is the medium utilized, the internet is still involved, you are speaking and playing music on the internet - thus you have created "your own centralized localized radio station" when you stream. It can further be broken down to point out that "central/localized is "YOUR PC".
For those that listen to internet radio they probably have no idea of the behind the scenes associations with the recording industry at large; but for those that have internet radio stations and DJ online, the consequences are quite severe for not securing appropriate licensing or paying fees directly to the three major organizations.
They are fortunately answers to that dilemna by legally licensing stations, and unfortunately some have not realized the consequences of operating with out the required licensing. There are alot of online articles generated on this topic, but I believe this one sums up the gist of the requirements and the fees associated with non-compliance. Whew, if one station had 500 listeners in a one month period w/o having obtained and appropriate licensing through a third party, fees of $20.50 x 500 would be quite the sum ..... thousands of dollars would accrue. Internet Radio Licensing and Fees
From the article above: (Quoted within legal guidelines): To put these numbers in perspective, a streaming service that operates 24 hours a day and averages 10 songs per hour would pay a royalty of about $8 per month if it averages one listener during every hour of operation, based on the rates for 2007. If the service is playing 15 songs per hour, the monthly royalty would be in the range of $12 per average listener. By 2010, the monthly payments would rise to approximately $13.75 per average listener for the service streaming 10 songs an hour, and to $20.50 per average listener for a service which averages 15 songs per hour.
The misconception that a stream to play music on residing elsewhere is not considered a "station", is essentialy flawed/false. Look at it in basic broken down terms " a stream is the medium utilized, the internet is still involved, you are speaking and playing music on the internet - thus you have created "your own centralized localized radio station" when you stream. It can further be broken down to point out that "central/localized is "YOUR PC".
For those that listen to internet radio they probably have no idea of the behind the scenes associations with the recording industry at large; but for those that have internet radio stations and DJ online, the consequences are quite severe for not securing appropriate licensing or paying fees directly to the three major organizations.
They are fortunately answers to that dilemna by legally licensing stations, and unfortunately some have not realized the consequences of operating with out the required licensing. There are alot of online articles generated on this topic, but I believe this one sums up the gist of the requirements and the fees associated with non-compliance. Whew, if one station had 500 listeners in a one month period w/o having obtained and appropriate licensing through a third party, fees of $20.50 x 500 would be quite the sum ..... thousands of dollars would accrue. Internet Radio Licensing and Fees
From the article above: (Quoted within legal guidelines): To put these numbers in perspective, a streaming service that operates 24 hours a day and averages 10 songs per hour would pay a royalty of about $8 per month if it averages one listener during every hour of operation, based on the rates for 2007. If the service is playing 15 songs per hour, the monthly royalty would be in the range of $12 per average listener. By 2010, the monthly payments would rise to approximately $13.75 per average listener for the service streaming 10 songs an hour, and to $20.50 per average listener for a service which averages 15 songs per hour.
In my thinking, artists should get paid reasonable fees for their music, and if the music industry would look at internet radio as the "new median", and focus on the "good of internet radio relations, rather than the polarized "old school", then all could live in happy accord together. Internet radio not only provides a social environment, it PROMOTES the artists, the art of music, and creates an easy mechanism for the listener to purchase music through different means either by one song downloads; (i.e., a download service such as Amazon, I-tunes, and direct from the artists; in addition to providing avenues to purchase entire cd's or box collections. Let's face it, the internet is the "social meca" in today's world. Collectively, if we all work together to promote the industry in a fair and reasonable fashion, then the music industry and internet radio will thrive "together" as a united community. For those stations that do not follow the current compliance by obtaining third party licensing, or paying fees direct to the 3 Associations, I hope you do not hear the sound of KNOCK KNOCK KNOCK or see a certified letter in the mail; please prevent that by taking the appropriate steps to ensure you are complying. I realize that everyone wants to enjoy music, and I whole-heartedly want that, what I do not want is for people to be harmed financially for non-compliance, and for the music industry to have further reasons to charge more for internet radio!
Let's all attempt to work together and create a fair and united community; there is a place for all stations and listeners, and you know that HHR just wants you to dance :) - but let's all dance in accord, peace, and legally. Peace Out!
Let's all attempt to work together and create a fair and united community; there is a place for all stations and listeners, and you know that HHR just wants you to dance :) - but let's all dance in accord, peace, and legally. Peace Out!
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