Up front with Web Radio

Written by tinfoil on Tuesday, 07 May 2002 18:55

I recently got the chance to talk to a member of the much maligned web radio community about CARP and what this bit of legislation could do for the webcasting community as a whole. Hit Read More for the interview.

Don Schockow with GroupieChick Radio was kind enough to field a few questions for me.

Tin: What are your thoughts on the CARP recomendations, are they fair?

Don: I certainly do not feel that the recommended royalty rate is fair when you compare it with traditional, over-the-air or cable broadcasting stations. To give you an idea, a cable broadcasting station will pay 6 1/2% of their gross revenues in royalty fees. While the CARP recommendation does not provide for such a percentage-of-revenue calculation for webcasters, in comparison, Live365 would be paying 183% of revenues for the month of February. Over-the-air radio stations would be paying nothing. That certainly doesn't seem fair to me.

Tin: Will we see a dramatic decline in webcasting startups? Will many smaller webcasters be closing or combining forces into one large webcast?

Don: I believe, if the CARP recommendation goes into effect on May 21st, we will certainly see a quick decline in web broadcasts. Webcasting, as we know it today, will no longer exist.

The enactment of the CARP recommendation on May 21st will cause two thins to happen. First, we will lose many smaller webcasts. Internet radio was finally a way for Independent Artists to get their music heard. It is a shame to see that taken away.

Second, we will see an upsurge in pirate radio on the net. Nobody will benefit from that.

Tin: Is it fair to webcasters vs. the fees the radio stations must pay?

Don: I feel that all broadcast channels, be they through satellite, cable, air or Internet, should pay the same rate. Those of us who have broadcasted through Live365 since its inception have been paying those royalties to ASCAP, BMI & SESAC as the law requires. This is why we have used Live365.

Last Words.

Right now, as an Indie music broadcaster, our only recourse is to get each artist to sign a waver saying we can play their music without paying the royalty. This will involve quite a bit of work, especially for the larger companies. But it may be the only way that we, as Internet broadcasters, can survive the CARP recommendation if it is approved. And that may not do us any good if the larger companies such as Live365 go out of business.

We'll be holding our breath in anticipation of May 21st. We have several other Internet radio stations that are there for pure entertainment and do not create revenue. It is broadcasts such as these that will suffer in the end.

Thanks Don for your time. Please visit GroupieChick and show your support for the webcasting industry.

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