On Mar 5, 3:18?am, "David Eduardo" wrote:
"Brenda Ann" wrote in message

...
am.html



I have an idea... if the big boys don't seem to think AM is viable, why
not give it back to the little local guys who CAN make it work? AM is
still very viable. It's the likes of Clear Channel et. al. that are
killing it by loading it down with the same **** all across the dial. Who
the hell wants cookie cutter radio?

Actually, when AM was called dead in the 80's, it was Clear Channel that
invested in facilities and talent and gave the band further life...

Since there are only, at most, one or two viable AMs in any market outside
of a few majors, there can hardly be cookie cutter radio (unless you define
syndicated talent as cookie cutter).

The rest of AMs can only make money with religion, brokered shows or niche
ethnic fare.

"Internet radio royalty rates decided (Verdict: it ain't good news)"

"The death of Internet radio, and the damage done to HD Radio, could
affect federal regulator's decision for the merger and the definition
of the relevant market."

"Smaller terrestrial radio stations will probably abandon online
streaming as they'll be paying more for online streaming then they
will for regular broadcasts (and for far less of an incoming revenue
stream). This applies just the same for HD2 streaming."

http://www.orbitcast.com/archives/in...good-news.html

HD Radio is really dead now - adios, HD Radio ! :-)

If I may quote Tattoo Vampire at alt.gossip.celebrities news group
thangy,
Talk is cheap because supply exceeds demand.
cuhulin

I remember in years past,ratchere in Jackson,Mississippi,,, I have
picked up before,Radio Stations in New York City and California and
Miami,La Florida and Washington State and Minneapolis,and buku,buku
other Radio Stations all in between on some of my old,old AM only
Radios,,, Lonnnnnnggggg distance.To HELL!!!!!!! with iboc!!!!!!!!!!!
cuhulin

In article ,
David Eduardo wrote:

KIRO, 50 kw in Seattle, is going to move to FM.

Er, didn't Bonneville sell KIRO to Entercom years ago?

Anyway, it'll go over like a lead balloon. FM in Western Washington ends
up full of holes. (I live in one of them). There's a lot of rolling
hills and they can't get a transmitter high enough to fill in the shadows.

The local NPR stations end up simulcasting on two or three transmitters,
something the commercial guys probably can't afford to do.

Mark Zenier
Googleproofaddress(account:mzenier provider:eskimo domain:com)

I HATE ALL hispanics.I Say KILL THEM ALL.hispanics,,, Get the HELL OUT
of My Country,UNITED STATES of AMERICA.
cuhulin

wrote in message
ups.com...
On Mar 5, 3:18?am, "David Eduardo" wrote:

"The death of Internet radio, and the damage done to HD Radio, could
affect federal regulator's decision for the merger and the definition
of the relevant market."

The formula for HD is different than web streams.

"Smaller terrestrial radio stations will probably abandon online
streaming as they'll be paying more for online streaming then they
will for regular broadcasts (and for far less of an incoming revenue
stream). This applies just the same for HD2 streaming."

Streams are paid on a per user basis. HD has a different pricing schedule,
and is a relatively low cost compared to the analog programming.

I get them snail mails once in a while,,, Do I want to sell my half
acrea of land in Interlachen,Putnam County,La Florida.One of them snail
mails had a hispanic return address on it.HELL NO!!! I don't want to
sell my half acre in La Florida!!!!!!! When I croak,my next oldest
sister gets my La Florida (Florida) half acre for FREE!
cuhulin

David Eduardo wrote:

wrote in message
ups.com...
On Mar 5, 3:18?am, "David Eduardo" wrote:

"The death of Internet radio, and the damage done to HD Radio, could
affect federal regulator's decision for the merger and the definition
of the relevant market."

The formula for HD is different than web streams.

"Smaller terrestrial radio stations will probably abandon online
streaming as they'll be paying more for online streaming then they
will for regular broadcasts (and for far less of an incoming revenue
stream). This applies just the same for HD2 streaming."

Streams are paid on a per user basis. HD has a different pricing schedule,
and is a relatively low cost compared to the analog programming.

Cheap QRM.

dxAce
Michigan
USA

wrote in message
ups.com...

HD Radio is really dead now - adios, HD Radio ! :-)


The decision does not affect HD at all. HD is "on air" and not a web stream.

Internet Radio-The Basics of Music Royalty Obligations

By David D. Oxenford
[August 2006]


I. Introduction

As over-the-air broadcasters and Internet-only companies make more and more
use of music on the Internet, they need to be aware of their liabilities for
music royalties. There are many dangerous myths currently circulating that
could very well get a company streaming music on the Internet into trouble.
For instance, many broadcasters believe that ASCAP and BMI royalties cover
them for all on-line music use. This is not true. ASCAP and BMI cover the
broadcaster only for the public performance rights to the underlying music
composition-the song itself-when an ASCAP or BMI song is played over-the-air
and simultaneously streamed on the Internet. As set out below, for digital
transmissions-like the Internet-there is an additional royalty, payable to a
company called SoundExchange. This additional royalty compensates the
performers of music. This royalty must be paid in addition to the fees paid
to ASCAP, BMI, and SESAC.

Another myth is that no royalty is due because the Sound Exchange royalties
expired at the end of 2005. While the negotiated royalties set out below did
technically expire at the end of the last year, by law, Internet radio
services must continue to pay at the old rate until new rates are
established. Any payments made are subject to retroactive adjustment when
the new rates are established.

Yet, even with these royalty obligations, the use of music on-line continues
to expand. Increasingly, consumers are looking to the Internet for the kinds
of entertainment that was once provided exclusively by over-the-air
broadcasters. Music, and now video, is available on a myriad of websites,
and the availability of these services on the Internet only seems to be
growing. The future promises even more availability of this kind of content,
as wireless access to the Internet becomes more common. Soon, the digital
consumer will be connected to the Internet anywhere, anytime. Thus, the
advantage of the traditional broadcaster-that its signal is ubiquitous-will
be matched by their Internet brethren.

In today's world, the broadcaster wants to go where its audience is, and
that will include the Internet. The over-the-air broadcaster can widen its
reach, both geographically, and into places where its current signal does
not reach. Those steel buildings that block the signal of broadcast stations
need no longer be an obstacle to the listener who can tune into their
favorite station by going to their computer. In recent months, more and more
broadcasters seem to be putting their signals onto the Internet to be
competitive to the programming that is already there.

But, in making the decision to become an Internet broadcaster, there are
many legal issues that need to be understood. This memorandum describes the
issues relating to music royalties. Any Internet radio operator needs to be
aware of the rules of the road, and this memo provides a basic overview of
those rules. This memo is not meant to provide a full guide to all the legal
issues that may arise in operating an Internet radio station, and it cannot
even provide a full picture of all the legal issues involved with the music
royalty obligations of such an operation. Any business decision should be
made only after assessing the particular business plan you may have in mind
with someone well versed in the details of the royalty obligations. This
memo should be looked at as a starting point for assessing the liabilities
that you may face in any Internet radio venture.

As is clear by the conditions set forth below, this memorandum addresses the
music royalty issues only as it affects Internet radio services. There are
other statutory licenses for satellite radio, digital cable radio, and
digital business services. These royalties are not addressed by this
memorandum. For on-demand services, including downloads and podcasts, there
is no fixed music royalty. Instead, permission must be obtained directly
from the copyright holders in any performance before it can be used by such
services. The royalties set out below do not apply. Individual negotiations
with copyright holders are required to use music in connection with these
on-demand services.

As noted above and as described in the last section of this memo, the
current music royalties for Internet radio are in a state of flux. At the
time this memo was written, a proceeding was underway before the Copyright
Royalty Board to determine the music royalties for the use of sound
recordings on Internet radio stations for the period of 2006 through 2010.
As these royalties have not been established, those currently streaming are
doing so at the risk of having royalties established that would create
unanticipated, retroactive royalties for all streaming done after Dec. 31,
2005. So, all Internet radio broadcasters should proceed with caution.

II. Music Royalties

A. The Traditional Performing Rights Organizations

Traditional broadcasters are accustomed to paying royalties for the use of
music to ASCAP, BMI, and SESAC. These royalties compensate the composers of
music broadcast by traditional radio stations. In the Internet radio world,
ASCAP, BMI, and SESAC are still paid for the use of their music. For an
Internet-only station, each of these organizations has its own license for
Internet music use, and each works in a slightly different manner. All
involve a minimum fee. In addition to the minimum fee, there are royalties
based either on revenues or website usage. Information regarding the
specific fees that are due to each service can be found on each of these
companies' websites.

http://www.ascap.com/weblicense/
http://www.bmi.com/licensing/webcaster/
http://www.sesac.com/licensing/internetLicensing.asp

For Internet radio stations that simulcast the signal of an over-the-air
broadcast station on a nonsubscription basis, fees for Internet usage of the
music licensed by ASCAP and BMI are covered by the current broadcast
licenses. However, the broadcast licenses cover only the over-the-air
programming which is simultaneously streamed on the Internet. If a
broadcaster is operating a "side channel" not being broadcast over-the-air
and that channel features music, a separate Internet-only license must be
obtained.

B. The Performance Right in Sound Recordings

In the digital world, the royalties paid to composers of music through
ASCAP, BMI, and SESAC are joined by a new royalty due to SoundExchange.
Unlike traditional broadcast music royalties that pay the composers of
music, the SoundExchange fee goes to the performers who are featured on a
recording of a piece of music. The Digital Millennium Copyright Act (DMCA)
required that royalties be paid to the performers for all digital uses of
music except those in an over-the-air digital transmission by a broadcast
station, e.g. through the Ibiquity digital radio system or as part of a
Digital Television stream. The royalty to SoundExchange is paid both to the
owners of the copyright in the performance of a piece of recorded music and
to the performers of that music. Half of the fees collected go to the
performers, and half to the copyright owner in the performance (usually the
record company). This royalty comes about as the result of a "compulsory
license" which allows Internet broadcasters to use music without the
explicit permission of the artists and copyright holder, provided that the
broadcaster pays this royalty fee and complies with certain usage
restrictions described below. The royalty rate is set by a government agency
called the Copyright Royalty Board.

The rates charged to a webcaster under the compulsory license are discussed
later in this memo. In order to qualify for the compulsory license, an
Internet radio station must meet a number of requirements. If these
requirements are not met, and the webcaster does not, through some private
negotiation with the copyright holder, directly obtain permission to use the
music in its transmission, then the webcaster has violated the law and is
subject to damages and penalties for copyright infringement. Thus, to get
the benefit of this statutory license, the Internet radio operator should
carefully observe all of the requirements set out below.

Step One-Registration with the Copyright Office

To qualify to use the compulsory license, a webcaster must register with the
Copyright Office, filing a Notice of Use of Sound Recordings Under Statutory
License. That form is to be filed before the commencement of service, and
must be submitted with a filing fee, currently $20. A single filing can be
used to register multiple streams available on the same website.

The required form can be found on the Copyright Office's website:
http://www.copyright.gov/forms/form112-114nou.pdf

The form appears somewhat confusing, as it asks if you are registering for a
Section 114 license and/or a Section 112 license. In fact, webcasters need
both, as Section 114 deals with the right to perform a musical work, while
Section 112 gives a webcaster the right to make "ephemeral copies" of the
work. An ephemeral copy is the transient copy of the recording that is made
in any digital transmission process, as data is transmitted from server to
server and, theoretically, copies reside on the memory of a computer for at
least some period of time, no matter how short that time may be. While some
have argued that the ephemeral copy has no independent value, technically,
there is still a portion of the royalty paid to cover the making of that
copy.

You are also required to indicate whether you will be a subscription or
nonsubscription service. There is a box for "Pre-existing subscription
services." These were the few digital subscription services that existed in
1998, that are subject to a different royalty than services which have come
into existence since then. Other than the handful of Preexisting Services,
everyone else would be a "New Subscription Service" or a "New
Nonsubscription Service," depending on whether a fee is charged to the
consumer for the use of the service.

Step Two-Comply with the Performance Restrictions

Under the provisions of the DMCA, a service must meet a number of
restrictions on the way in which the sound recordings are used. Adopted
principally as a means to make it difficult for listeners to capture a
digital copy of a sound recording played on a digital service, these rules
adopt restrictions which may make some familiar broadcast practices
difficult to replicate on the Internet, and may cause some broadcast
stations to forfeit their rights to the compulsory license if they do not
modify their practices. These rules include the following:

1.. No Interactive Service.

A webcaster cannot provide an "interactive service." An interactive
service is one which allows a listener to receive a specially created stream
where the listener can dictate the songs being played. In other words, a
broadcast-type transmission in which the broadcaster makes the musical
selections, is permitted. However, allowing a consumer to determine the
songs played on an Internet stream by picking from a menu of songs would
take the website out from under the compulsory license. Playing call-in
requests is not prohibited, as long as the Internet station selects which
requests to play, and when to play them. Services providing a limited degree
of interactivity-those that allow a listener to select or de-select
particular artists to be included in a stream, or to skip a limited number
of songs, without guarantying that any particular song or artist will be
played at any particular time-are in a gray area where hard and fast lines
have yet to be drawn delineating what is permissible under the statutory
license and what is not.


2.. Transmission of Copyright Information.

An Internet radio service must identify in text on its site during (but
not before) the time that any song is being played, the (i) title of the
sound recording (i.e. the song title), (ii) the album or CD from which the
song came, and (iii) the featured artist. And, if technically feasible, the
sound recording must be accompanied by information that is encoded by the
copyright owner that identifies the sound recording title, the featured
artist and related information concerning the underlying musical
composition.


3.. Sound Recording Performance Complement.

The Internet radio service is also subject to a number of restrictions on
how often songs by the same artist or from the same album can be played.
These restrictions are referred to as the "sound recording performance
complement." These restrictions have two components:


1.. One Album or CD Restriction. On a particular channel, within any
three-hour period, the programming can contain no more than three selections
from any one album or CD, and no more than two such selections can be played
consecutively; and


2.. Featured Artist Restriction. On a particular channel, within any
three-hour period, the programming can contain no more than four different
selections by the same featured artist or from any set or compilation, and
no more than three such selections can be played consecutively.


4.. Advance Program Schedules.

With a very limited exception for noncommercial classical music broadcast
stations that had published program guides prior to 1998, the webcaster
cannot publish an advance program schedule which identifies when a specific
recording, album or CD or featured artist will be played on its stream. This
does not prohibit a DJ from announcing that a particular song is coming up,
though the exact time cannot be given.
Additional restrictions prohibit the use of music in association with visual
images of a product in such a way so as to imply an association between the
music and the product. Music must also be used on a site that is principally
related to music, not to the sale of a particular product.

The compulsory copyright only applies to legal recordings-so do not use
bootlegs. Webcasters are also required to cooperate in various anti-piracy
efforts, to make it more difficult to record songs off of the music stream
that is provided.

Step Three-Calculate and Pay the Royalties

The royalties that SoundExchange collects from the webcaster are set on an
industry wide basis. The royalties were originally to be revised every two
years, through an arbitration proceeding. However, the first arbitration
proceeding was quite long and expensive, and it produced a result about
which no party was happy, so Congress changed the rules last year. Now,
royalties will be adjusted once every five years. A new government board,
the Copyright Royalty Board has been created. The Board has three permanent
Judges who will hear cases having to do with various compulsory licenses.

The initial royalty rates were established in 2002, and modified by various
settlement agreements between the recording industry and different
webcasting factions. All of the current royalty rates for webcasting
technically expired at the end of 2005. There is currently a proceeding
underway before the Copyright Royalty Board to determine the rates for 2006
through 2010. As you might expect, SoundExchange is suggesting that the
rates be raised, while the various webcasting groups are asking that the
rates be reduced. Unless there is a settlement, a decision as to the
royalties may not come out until early 2007. However, the rates that are
established will be retroactive to the beginning of 2006.

Under the law, Internet radio companies must continue to pay royalties at
the old rate until the Copyright Royalty Board sets the new rates. Thus,
Internet radio services should keep paying at the rates in effect through
2005, knowing that the services may be either entitled to a rebate, or they
may have to pay more, depending on the outcome of the current proceeding.

A summary of the rates that were in effect in 2005, which Internet radio
webcasters should still be paying until the new rates are established, are
set out below. Forms for submitting royalty payments to SoundExchange can be
found on the SoundExchange website:
http://www.soundexchange.com/licensee_home.html. SoundExchange does not send
a bill to webcasters. Instead, each webcaster is responsible for determining
the amount of its own royalties and submitting those royalties when due,
with required reports computing the applicable fee. For the most part, fees
and reports are to be filed on a monthly basis. SoundExchange also has the
right to audit Internet services. Early this year, it announced that it had
exercised that right with response to several Internet radio services,
though the results of those audits have not been made public.

Different types of services pay at different rates. The rates at which
services should currently be paying are as follows:

Nonprofit Associations, Educational Institutions and Government Agencies

Nonprofit webcasters pay a specially negotiated rate. Nonprofit music
stations pay $500 yearly, which entitles them to stream to an average of 200
simultaneous listeners (146,000 aggregate monthly tuning hours). If a
service streams more than that amount, the nonprofit webcaster pays either
on the basis of "performances" (one listener who listen to one song is one
"performance," two listeners listening to the same song would be two
performances and so on) or on the basis of aggregate tuning hours (one
listener who listens for one hour would be one "aggregate tuning hour," two
listeners who listen for half an hour each would be one tuning hour, as
would four listeners who each listen for 15 minutes each). The nonprofit
royalty for that listening above 146,000 aggregate tuning hours in a month
is .02176 cents ($0.0002176) per performance or .251 cents ($0.00251) per
aggregate tuning hour. The webcaster makes an election as to whether to pay
based on aggregate tuning hour or on a per performance basis.

Note that the Corporation for Public Broadcasting had negotiated a private
deal with the recording industry that allows its member stations to stream
music on their websites without paying these or other royalties. The terms
of this deal are confidential. Broadcasters receiving CPB money should
discuss the deal with the CPB to see if their streaming activities are
covered. If they are, no additional, independent royalty payment would be
due. Note, however, that the CPB deal has apparently expired, as NPR is one
of the parties currently participating in the Copyright Royalty Board
proceeding.

Small Commercial Webcasters

In late 2002, after a public outcry claiming that the royalties established
by the initial royalty arbitration proceeding would put smaller commercial
entities out of business, the recording industry reached an agreement to
establish a special rate for "small commercial webcasters," essentially
those with less than $1.2 million in revenue. While the rates are high as
compared with traditional ASCAP and BMI rates, they were the first
industry-wide percentage of revenue rates agreed to by the recording
industry.

These royalties require that a small commercial webcaster pay a royalty
equal to 10 percent of its revenue on the first $250,000 of its revenues,
and 12 percent of all revenues thereafter, or 7 percent of its expenses,
whichever is higher. A minimum fee of $2,000 per year is established for
those webcasters who make less than $50,000 in revenue. For those who make
more, the minimum fee is $5,000.

The $1.2 million eligibility figure looks at revenues of the webcaster and
any company under common control which uses sound recordings as the basis of
its income. Thus, a broadcaster which has revenues greater than $1.2 million
is not eligible for the small webcaster deal, even if the webcasting is done
through a separate company, if the broadcast and webcasting companies are
under common control.

Commercial Webcasters (including broadcasters)

For all other nonsubscription webcasters who are eligible to pay royalties
under the compulsory license, payment is based on listening. These
webcasters have the option of either paying on a per performance basis (per
song per listener) or based on aggregate tuning hours. The webcaster must
track its listenership using either of the measurement standards set forth
below. Most services opt for the Aggregate Tuning Hour payment, as there are
few commercially available tools that track and report on listenership on a
per song basis. The rates are as follows:

Per Performance: The rate is .0762 cents ($0.000762) per song per listener,
except that 4 percent of all performances can be excluded. The 4 percent
exclusion is meant to take into account partial performances due to
listeners tuning out, player malfunctions and similar factors-but does not
include situations where the webcaster offers a "skip button" where a song
can be skipped.

Per Aggregate Tuning Hour: The other option is to pay based on aggregate
tuning hours. A pure webcaster would pay 1.17 cents ($0.0117) per aggregate
tuning hour. A broadcast simulcast (identical to the over the air broadcast
but for the commercials, which can be changed) would be charged at the rate
of .88 cents ($0.0088). The lower rate offered broadcasters was premised on
the assumption that, due to higher commercial loads, more informational
programming, etc., broadcast simulcasts are likely to have fewer songs in a
typical hour.

The minimum fee for such services is $2,500 or $500 per channel, whichever
is less. There are lower rates for programming that is primarily "talk" in
nature.

Subscription Services

In addition to the rates specified above, a webcaster offering a
subscription service can pay either based on the per performance or
aggregate tuning hour options listed above, or it may elect to pay based on
a percentage of revenue. Under the current rules, this election is to be
made when the webcaster begins its service, and cannot be changed. If the
subscription webcaster decides not to pay on the basis of usage, it can
elect to pay 10.9 percent of its subscription revenues to SoundExchange. The
subscription revenues would include revenues received from subscription
fees, advertising in the subscription streams, banner ads unique to the
subscription page, and any sale or other use of information gathered about
the subscribers. Those subscription webcasters electing the percentage of
revenue model are required to pay a minimum fee of 27 cents per subscriber
(including trial subscribers) per month, with a minimum annual fee of
$5,000.

III. Conclusion

This memo addresses only the basics of the webcasting royalties. Each of the
royalty options addressed above have numerous filing requirements and
paperwork reporting obligations that must be met, and all require the
reporting of information to SoundExchange to demonstrate that the webcaster
is properly computing its payments. And, as set forth above, these
royalties, while they still must be paid, are subject to retroactive
adjustment once the Copyright Royalty Board determines the rates for
2006-2010.

While complicated, the system can be learned and compliance has been
achieved even by the smallest of companies. So, while the royalties present
a new challenge to those companies interested in streaming their content on
the Internet, they should not present a bar. Companies are doing it
today-and competition will only be more difficult as time passes.

David Eduardo wrote:

"dxAce" wrote in message
...


David Eduardo wrote:


I have about 10 years to go, so don't count the days.

Well heck, you'll be 70 then.

I enjoy what I am doing. You obviously don't.

Retire, enjoy yourself!

And radio is notorious
for having no pensions... you save and invest or you are screwed.

Well, I have my pension from my previous employment, and I saved and
invested.

It could be much worse.

Yeah, you could have not been a racist bigot.

Heck, all I want is for the illegals to go home!

But, in typical left-wing fashion you try to turn that into racial bigotry.

That may play well in the barrio, Edweenie... but it don't play here.

Run along now... and spin some salsa.

Dance little boy, dance!