Pandora And Others Launch Save Internet Radio Campaign

The U.S. Copyright Royalty Board has upheld a rate increase for internet broadcasters, which many webcasters, including the popular Pandora music service, say will force them to close up shop.

In yesterday's hearing the CRB reaffirmed last month's decision to force webcasters to pay an annual fee plus 12 percent of their profits to SoundExchange, the industry's royalty collection agency.

The new rates are four times higher than what satellite radio pays and traditional broadcast radio doesn't pay the fees at all.

National Public Radio, which led the appeal on behalf of smaller broadcasters, has called the CRB's decision an “abuse of discretion.”

For more coverage be sure to check out Eliot's write up on Listening Post.

With the CRB avenue essentially exhausted, it would seem that the death of Pandora and others in imminent. But in light of the CRB's decision, a number of internet broadcasters have banded together and are trying to petition congress to step in.

In an email to subscribers over the weekend Pandora founder Tim Westergren writes of the Save Internet Radio campaign:

Hi, it's Tim from Pandora,

I'm writing today to ask for your help. The survival of Pandora and all of Internet radio is in jeopardy because of a recent decision by the Copyright Royalty Board in Washington, DC to almost triple the licensing fees for Internet radio sites like Pandora.

In response to these new and unfair fees, we have formed the SaveNetRadio Coalition, a group that includes listeners, artists, labels and webcasters. I hope that you will consider joining us.

Please sign our petition urging your Congressional representative to act to save Internet radio: http://capwiz.com/saveinternetradio/issues/alert/?alertid=9631541

Understand that we are fully supportive of paying royalties to the artists whose music we play, and have done so since our inception. As a former touring musician myself, I'm no stranger to the challenges facing working musicians. The issue we have with the recent ruling is that it puts the cost of streaming far out of the range of ANY webcaster's business potential.

If you're a fan of internet radio and think that the DRB's decision is unfair for web broadcasters, head over to the Save Internet Radio site and sign the petition. To contact your representatives directly, you can look up their contact info on the site.