What the $#@* is wrong with the RIAA?

Posted by avatarErik last updated March 7, 2007 at 12:08 pm

...and the US Copyright Royalty Board, and Soundexchange.com. I mean seriously.

Last Friday, CRB announced the new royalty rates for webcasters and Internet radio that will likely put many of them under. The new rates are significantly higher than before and are effective retroactively from 2006 to 2010. If you do some crude math, it works out to about 1.2 cents per listener per hour ($9/listener/month). This puts them at a significant disadvantage to subscription models like XM and Sirius. On top of that, by 2010 the price will be 3 cents per listener per hour.

Like I've said before, we're huge fans of Radio Paradise (a popular indie, classic rock) Internet radio station, who have said that their royalties payments will now be 125% of their revenues. They are facing their demise because of this ruling. Read a powerful blog post from Bill Goldsmith, a founder and DJ at Radio Paradise.

What the hell is wrong with these organizations? Why do they want to make life suck?