Yahoo threatens to drop Internet radio because of royalties

Bloomberg is reaporting that AOL and Yahoo are both considering shutting down their Web radio operations due to a 38% spike in royalty payments over the last few months. The sharp increase is due to royalty rates that the U.S. Copyright Board approved over webcaster objections earlier this year. It was a word for word copy of a proposal from SoundExchange, the agency responsible for collecting and distributing royalties on behalf of music labels.

Besides increasing royalties to astronomical levels over the next couple of years, it also increases royalty payments retroactively, forcing online radio services to make additional payments for broadcasts they've already paid for once. "We're not going to stay in the business if cost is more than we make long term,'' Ian Rogers, general manager at Yahoo's music unit, told Bloomberg. The good news for webcasters is that their appeal is scheduled to be heard starting in February.

At least one investment analyst isn't overly concerned about Yahoo's long term plans for online radio. Capital Markets analyst Jordan Rohan laughed at the notion, saying "With the abundance of free or relatively free music available, shuttering the service won't cause that much of a disruption in the market."

Source: Wired

Written by: Rich Fiscus @ 29 Nov 2007 20:11

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9 comments

jookycola

No matter how much I hear stories like this i still just can't understand how the RIAA and the music industry as a whole just continue to bite the hand that feeds.

I do however understand WHY they do it though. With all independant radio stations gone they have 100% control of the radio market. Therefore controling what we listen to. Which translates into horrid talentless artists being forced in our face, while good up and comers languish and die.

With the record companies in full control of what you hear, you'll be forced to listen to Britney Spears like artist with no talent but great marketing. The music business today is NOT about managing artist, but instead making brands.
It all goes hand and hand with P2P, as they force us to listen to their controled garbage, we'll just go off the grid and get good music elsewhere. Already a lot of high profile artists are offering their new albums directly throught their own websites. I think it's the very early stages of the music industry in it's current business model about to implode.

29.11.2007 21:05 #1

llongtheD

I agree with you Jookycola. Maybe their grand plan to force us to buy "formula" music using their lobbyists, paid for politicians, and lawsuits against their customers is languishing.

29.11.2007 22:41 #2

nobrainer

the riaa see the radio as "free music" and as long as ppl can listen to "free music" they will not bother to purchase the $hit they pump out.

the solution is real easy boycott all riaa members music!

the riaa and mpaa are killing the industry because of greed.

Tor: anonymity online HIDE your IP from the spies, post and browse anonymously! http://www.torproject.org/

THE RIAA SOUNDEXCHANGE ARE: SONY, UNIVERSAL , WARNER GROUP, EMI.

THE MPAA ARE: SONY, UNIVERSAL, WARNER GROUP, DISNEY, PARAMOUNT, FOX.

30.11.2007 05:13 #3

DXR88

I constantly hear about boycotting against these Loafer's. simply put its to late to Boycott against them they now worked there way into govt. they are one of 5 multi billion dollar company's. the only thing that i am quite sure will happen is that they will dig there own grave and will be coverd up for life.

however boycotting will resault in a change of how artist's distribute there work because if the RIAA dosent get there payment they will cut artist's pay AGain and hurt the artist. this will do two things ether the artist drops out of the music industree or they find away to work around the RIAA's 50 years after you die your work belongs to us unless we make a greatist hitz cd of you after you die and extend it to 100 years.

30.11.2007 12:47 #4

ali2007

i say we call a major strike ,no buying getting everything for free and show them what we are

30.11.2007 14:20 #5

WierdName

It's kinda funny actually... I remember playing a game called "roller coaster tycoon" that, if you charged to much for stuff, your park would go under very fast because most would pay and a fairly large amount would just leave. The record companies are charging too much, and as a result, will go under if they don't realize that they aren't offering something people will pay ungodly amounts of money for.

30.11.2007 16:03 #6

spydah

Originally posted by ali2007: i say we call a major strike ,no buying getting everything for free and show them what we are
That would be a good idea but a lot of people dont have no back bone or just to scared to do stuff thats right.

1.12.2007 21:30 #7

borhan9

Leave radio alone its how the artist get their music out there and listened to this is going way to far. Downloading or ripping from the radio i understand but listening to radio is everyones right and should not be taken away.

21.12.2007 21:14 #8

nobrainer

Originally posted by borhan9: Leave radio alone its how the artist get their music out there and listened to this is going way to far. Downloading or ripping from the radio i understand but listening to radio is everyones right and should not be taken away.totally agree and its the best advertising artists can get to fill the seats at the concerts but seems the RIAA make no monies from concerts, yet, it does not benefit them and with the falling revenue because ppl are hopefully waking up they will claw as much from where ever they can.

sony and co have a lot to answer for in this rip off price fixing world!

Tor: anonymity online HIDE your IP from the spies, post and browse anonymously! http://www.torproject.org/

THE RIAA Soundexchange Are: SONY, UNIVERSAL, WARNER GROUP, EMI.

THE MPAA Are: SONY, UNIVERSAL, WARNER GROUP, DISNEY, PARAMOUNT, FOX.

22.12.2007 05:41 #9

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