More of this Feature • Part 3: Novel Uses For Internet Broadcasting

Related Resources • Radio And Internet Newsletter • International Webcasting Association • RealAudio • Internet Radio Fairness Act • Radio Paradise • Radioio • Beethoven.com • 3WK Underground Radio • Digitally Imported • WOXY Alternative Rock • KCRW Alternative Rock

From Other Guides • Streaming News On The Net • Internet Radio Broadcasting • Beatles Internet Radio

Corey: The music royalty issue may very well blot out of existence hundreds if not thousands of potentially good web-based radio stations. What might be a better alternative that would benefit both the RIAA and Internet listeners?

Paul: There are a couple of different schools of thought here. The most obvious is a percentage-of-revenue based royalty fee, like the PRO's (the agencies that collect royalties for songwriters and publishers from broadcast and Internet radio alike -- ASCAP, BMI, and SESAC) have used successfully for decades. This method would allow brand new, "pre-profit" businesses to grow into fiscally healthy concerns without getting squashed before they have a chance. The record companies argue that folks "are building businesses on the work of artists." But it's not much of a business if no money's coming in. The percentage of revenue would say "When we get paid, you'll get paid; and the more we make, the more you'll make." It helps the artists too, because if webcasters get eliminated by royalties they can't afford, there's no one left to pay royalties.

There's also a bill in the House called the Internet Radio Fairness Act, which would exempt small businesses ($6 MM/yr. revenue or less) from these royalties. That way, the webcasters like AOL and Yahoo would still be paying artists to use the music, yet smaller independent webcasters who aren't building multi-million dollar businesses can survive.

Corey: How do you think RealAudio's new HELIX project will affect webcasting? Is this their "Ace in the hole" against Microsoft's Windows streaming?

Paul: I'm not very familiar with the RealAudio Helix project. But it seems that opening the platform as wide as possible will certainly promote its adoption. Sharing the code with developers as well as making it a "one size fits all" that can handle other streaming formats will widen Real's reach. And squeezing competitors out of the picture is a move straight out of the Microsoft playbook.

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