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 Technology News | June 2007 
Protest Will Silence Some Online Music
 Hiawatha Bray - Boston Globe
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A swath of the Internet went silent today, as online music broadcasters shut down to protest a plan that will sharply increase the royalties they pay to recording companies and musicians.
"We're pulling our streams on Tuesday as a way to increase the public awareness of this situation," said Phil Redo, vice president and general manager of the five Boston radio stations owned by Greater Media Inc. in Braintree. Redo and others who stream music over the Internet hope their "day of silence" will prompt listeners to lobby Congress in support of pending legislation to overturn the royalty hike.
The protest could have a sizable effect on millions of Internet listeners. In addition to Greater Media, Internet giant Yahoo Inc. will shut down about 200 channels of free Internet music , as will Live365, which carries about 10,000 channels. In addition, a host of smaller online broadcasters are set to participate. Listeners who visit a favorite online broadcaster will be directed to Web pages listing contact information for members of Congress. Instead of their favorite tunes, they'll hear an announcement urging them to fight the royalty increase.
"I just hope that it creates one final push of momentum . . . and it really lets Congress know that it's a dire situation," said Justin Savage, founder of LoudCity, an Internet music streaming company in Somerville that supports about 525 online channels. Savage said that his two-year-old start - up company would be forced out of business by the royalty rate hike.
But a spokesman for SoundExchange, the music-industry organization that collects the Internet royalties, scoffed at the lobbying effort. Richard Ades said big, profitable companies like Yahoo and Time Warner Inc.'s AOL network can afford to pay a fair price for the music they stream, and that SoundExchange has proposed a less expensive plan for smaller Internet broadcasters.
The Internet music royalty dispute began in March, when three federal judges appointed by Congress decided on a big increase, retroactive to 2006. Broadcasters will have to pay 5 percent more in music royalties for this year and last, and further hikes of 20 percent per year for the next three years. The new rates are supposed to take effect by mid-July.
But the Digital Music Association, which represents Internet broadcasters, has asked a federal court to suspend the increase pending an appeal. Such a delay would give Congress more time to act. Members of both political parties have filed legislation in Congress that would reduce Internet music royalties below their present level. Ades denounced the bills as "a cash grab by big Net radio."
Hiawatha Bray can be reached at bray@globe.com. |
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