Monday, Jul. 13 2009 @ 2:06PM
On Tuesday, July 7, the recording and Internet radio industries finally agreed on how the latter will compensate the former for streaming music via the web.
The resolution was a long time coming. Former
RFT writer Randall Roberts (now music editor for our sister paper,
LA Weekly) wrote about the conflict two and a half years ago when he profiled Jim and Wanda Atkinson, Internet radio pioneers and proud proprietors of south St. Louis-based
3WK Internet Radio (est. 1997).
Here's a
New York Times story about the newly established rules for royalty payments, aptly headlined "
Music Labels Reach Online Royalty Deal." Be warned, though -- the
Times piece is rough sledding. You might, after reading it six times through, s-l-o-w-l-y, have a notion about what was at stake in this tussle, and how things now stand. Probably not, though.
So here's some background:
Since the dawn of the radio age, U.S. broadcasters have paid royalties to songwriters. Unlike the rest of the industrialized world, however, American AM and FM stations do not compensate record labels or the performers themselves. That fact has been a bone of contention for decades and a topic of recent debate as Congress mulls it over. (For more, visit the website of
musicFIRST, a coalition of artists intent upon making terrestrial radio pony up.)
Though the U.S. government hasn't yet settled the AM/FM question, when Congress passed the landmark Digital Millennium Copyright Act of 1998 (DMCA), it stipulated that web streamers and satellite stations must pay songwriters
and artists and their labels. When the dust cleared, a preliminary setup was established. The price was steep, and especially so for comparative bit players like 3WK with annual revenues of less than $1.25 million -- "small webcasters" in Congressional parlance -- who feared the required payments would force them out of business.
(For a detailed explanation, click through to
Randy Roberts' 2006 story, "You Play, They Pay," and search for "DMCA," and, if you still want more, read "
Small Webcasters Dealt Death Blow," the 2007 follow-up he wrote, on
Daily RFT.)
Now, after much rancorous debate, last week's settlement nails down a structure, with new stipulations for mega-streamers like
Pandora and small fry like 3WK.
Click to the jump to read an e-mail Q&A with 3WK's Wanda Atkinson about the settlement and the future of Internet radio...