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Internet Radio/Webcasting FAQ
Q. What is webcasting?
A.
Webcasting is the streaming of an audio or video program over the internet.
However for our purpose we will refer to it as audio.
Q. Why is the RIAA against webcasting?
A.
Actually they aren't, at least according to them, they just want to
get paid royalties for each and every song that is streamed or downloaded.
There can't be interactivity, and you can only play so many songs by
one act during a given time period. The statutory license you hear mentioned
so often, is very restrictive. The recording industry wants it to be
basically like radio. You have no choice or input into what you hear,
but yet they want to be paid for non-interactive webcasting. (Something
that broadcasters aren't required to do.)
Q. So what is the big deal?
A.
Radio stations that use the airwaves (AM or FM) rather than the internet
pay no royalties to the performing artists, only to the publishers and
songwriters, but under the DMCA (Digital Millennium Copyright Act) if
you webcast you pay royalties to both the performing artists and to
the publishers. If you broadcast and webcast you get hit with a double
dip, as you must pay the publishers twice and the recording industry
once. Now here is the scary part, these fees, once they have been determined,
are retroactive back to 1998 when the DMCA was passed.
Q. Don't the Record Labels pay to have their music played on "traditional"
radio stations?
A.
Yes they do. They pay millions each year to "Indies" or independent
promoters who in turn pay certain stations to put new music into the
rotation on their charts. The amount of airplay has nothing to do with
the popularity of the song, the quality of the music, but more to do
how much was paid to the station to play it. But yet, if you want to
play the same music on a webs
tation, you pay the recording industry
to play it.
Q. Is it true that a webcaster has to pay twice if they offer a choice
of formats to streaming?
A.
Yes, under the current law, each file type is considered to be "licensable"
and as a result if a webcaster offers say RealAudio and Streaming MP3
they must pay two license fees. Rick Boucher and Chris Cannon have introduced
the Music Online Competition Act (MOCA) in congress that addresses this.
It's about giving the user choices. If you listen in one format, you
probably won't be listening in a different format.
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