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September 27, 2008 12:34 PM PDT

Pandora says Net radio vote is too close to call

by Greg Sandoval

Update at 5:50 p.m. PDT: The House actually did weigh in on the bill on Saturday, passing it unanimously by a voice vote.

Proponents of Web radio stations are predicting a very close vote in Congress on a bill that they paint as life or death.

The House of Representatives is set to vote Sunday on the Webcaster Settlement Act, which would allow Web radio stations to negotiate with the music industry for a royalty rate lower than what Congress mandated last year.

Companies like Pandora are seeking a reduced rate and say that they simply cannot afford to keep operating with the higher rate.

The bill was scheduled to go to the House floor Saturday morning but was postponed twice. Meanwhile, the National Association of Broadcasters, which opposes the bill, was also using the extra time to sway lawmakers.

Because the bill is being considered under a suspension of rules, it will require a two-thirds majority to pass.

Asked which way Congress was leaning, Pandora founder Tim Westergren said it is too close to call.

"NAB is gunning full bore to kill the bill," Westergren said. "It's become a straight up battle between NAB lobbying might and constituents. Calls from listeners have been raining in since last night. (It's) touch and go."

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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by Core_M September 27, 2008 1:22 PM PDT
As far as I know, this is only a US thing. Web radio in any country other than the states is totally legal. Why they want to shut down only web broadcasters is beyond me. But oh well, I listen to a Montreal (Quebec) based radio station anyways, and occasionally one from Paris. Still, why the Americans would want to crush their own web radio stations while other stations broadcasting from around the world do it totally legally is, again, beyond me...
Reply to this comment
by ukcannonfodder September 27, 2008 1:40 PM PDT
As an extra note there is also an anti-trust investigation going on regarding the RIAA (Sony, Universal, Warner & EMI) and now, News Corp (Rupert Murdoch) who own Myspace (& FOX) and are one of the driving forces behind the MPAA, as are Sony, Universal, Warner(Whom are members of the RIAA also).

http://www.dailytech.com/Independent+Music+Group+Blasts+MySpace+Music+for+Lack+of+Support/article13068.htm

Fta: MySpace Music hears the antitrust song

Indies call foul at exclusion

MySpace Music offers a service, using technology from Audible Magic, which allows indie labels to upload their own music. But scores of labels have reported they've been blocked from uploading their catalogs, even though they own the rights. A stumbling block appears to be the metadata database administered for MySpace by Audible Magic. If, as is commonplace, a major label owns territorial rights to a piece of indie music somewhere in the world, then the "ownership" is assumed to belong to the major label, not the independent. Which means that a US major pockets the royalty revenue for a British indie label.
by ukcannonfodder September 27, 2008 1:31 PM PDT
It's because they want to control the distribution so they can force their manufactured, talentless, pretty face, junk via MySpace and other such sites.

They, is the RIAA/Criaa/BPI/IFPI/SoundStage, Ect: Sony, Warner, Universal and EMI.

Its simply CORPORATE GREED with the backing of the US congress.

Couldn't webcasters bypass all RIAA affiliated music to avoid extortionate royalty rates, well NO because the Gatekeepers don't want you to listen to any Indie music as it diverts revenue away from them!

As we had with the Payola deals (RIAA pay to only play their music on the radio)

Now we have this, which makes it impossible for any Indie artist to succeed without signing their soul over to the Gatekeepers


http://slashdot.org/article.pl?sid=07/04/29/0335224&from=rss

fta: "With the furor over the impending rate hike for Internet radio stations, wouldn't a good solution be for streaming internet stations to simply not play RIAA-affiliated labels' music and focus on independent artists? Sounds good, except that the RIAA's affiliate organization SoundExchange claims it has the right to collect royalties for any artist, no matter if they have signed with an RIAA label or not. 'SoundExchange (the RIAA) considers any digital performance of a song as falling under their compulsory license. If any artist records a song, SoundExchange has the right to collect royalties for its performance on Internet radio. Artists can offer to download their music for free, but they cannot offer their songs to Internet radio for free ... So how it works is that SoundExchange collects money through compulsory royalties from Webcasters and holds onto the money. If a label or artist wants their share of the money, they must become a member of SoundExchange and pay a fee to collect their royalties.'"

http://www.dailykos.com/storyonly/2007/4/24/141326/870
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by HlLLARY CLITON September 27, 2008 1:46 PM PDT
Im on the edge of my seat....listening to Pandora for what may be the final time :(
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by aka_tripleB September 27, 2008 2:28 PM PDT
Why is congress regulating net radio? Should that be a FCC thing?
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by dascha1 September 27, 2008 3:00 PM PDT
Get over it and move on to create something *new*. Go for a 'talking Web' instead, to help inform folks who need assistance, and let music catch-up somewhere down the road.
Reply to this comment
by ukcannonfodder September 28, 2008 3:44 AM PDT
As an extra note there is also an anti-trust investigation going on regarding the RIAA (Sony, Universal, Warner & EMI) and now, News Corp (Rupert Murdoch) who own Myspace (& FOX) and are one of the driving forces behind the MPAA, as are Sony, Universal, Warner(Whom are members of the RIAA also).

http://www.dailytech.com/Independent+Music+Group+Blasts+MySpace+Music+for+Lack+of+Support/article13068.htm

Fta: MySpace Music hears the antitrust song

Indies call foul at exclusion

MySpace Music offers a service, using technology from Audible Magic, which allows indie labels to upload their own music. But scores of labels have reported they've been blocked from uploading their catalogs, even though they own the rights. A stumbling block appears to be the metadata database administered for MySpace by Audible Magic. If, as is commonplace, a major label owns territorial rights to a piece of indie music somewhere in the world, then the "ownership" is assumed to belong to the major label, not the independent. Which means that a US major pockets the royalty revenue for a British indie label.
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