Net radio bill passes House
Update at 7:28 p.m. PDT: Quotes have been added from the National Association of Broadcasters on why it no longer opposes the bill.
Web radio stations live to fight another day.
The House of Representatives has unanimously passed a bill that Web radio stations have painted as life or death for their services.
The Webcaster Settlement Act, which would allow Internet radio stations to negotiate with the music industry for a royalty rate lower than what Congress mandated last year, passed the House by a voice vote on Saturday.
Proponents of the bill had predicted a close vote.
Tim Westergren
(Credit: CNET News)Tim Westergren, founder of Net music service Pandora, said he was elated about triumphing in the House, which came after traditional radio broadcasters .
Dennis Wharton, a spokesman for the National Association of Broadcasters, said Saturday night that Rep. Howard Berman (D-Calif.) had met with representatives of the group and addressed some of their concerns.
As a result, the NAB dropped its opposition in the House and will not oppose the bill when it moves to the Senate for a vote, either Sunday or Monday (I've written a story about the bill's chances in the Senate and how the NAB was persuaded to drop it's opposition).
"The bill having passed unanimously in the House certainly gives it momentum heading into the Senate," Wharton said.
Webcasters are fighting for the right to negotiate with the music industry to reduce the royalty rates they must pay to stream music over the Web. Any deal must be approved by the federal government.
Congress is expected to adjourn on Monday, and the Webcaster Settlement Act enables Internet radio stations to reach an agreement with the music industry while Congress is out of session.
Westergren, who has emerged as a de facto spokesman for the bill, said some Web radio stations can't afford a long delay in the talks. Right now, the law requires them to pay the older royalty rate, which Webcasters say will soon drive them out of business.
"It would be a killer blow," Westergren said. "If we don't get it passed now, it would mean waiting for a whole new Congress and administration and lots of uncertainty."
As for the legislation's chances in the Senate, Westergren said he's cautiously optimistic.
"I've become gun shy because I've been burned so many times before," he said. "We're waiting to see what happens and consulting with our friends (in Congress)."
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. 
Anyone care to comment that actually understands this issue or has something intelligent to say?
The newest enemy is NAB which was a brother in arms with webcasters for about a year now against RIAA/SoundExchange. Now at the eleventh hour, they (NAB) turn on webcasters and try to undermine passage of an agreement that would keep webcasters alive. NAB has now betrayed their TRUE desire to eradicate all non-terrestrial webcasters and save the internet for themselves. Big surprise.
If you're looking for someone who the Webcaster Settlement Act does NOT concern, look no further than NAB.
Everywhere you look...weasels.
anyone that is willing to pay to do their job must be dong what they want to do with life.. or like the paid media got that Tom Sawyer paint brush and want to charge people to work for them.. and that is where commercial broadcasting has gone with music entertianment and content.. Public service is the public free at service to the public
its time Public servants started doing the same.. kill the salries and live on your forturnes unless you have less than 50 grand to your name then you need a salrie for your work.. if your independantly weahtly drop the congressional healt insurance and retirement program.. they dont need it.
same is true for any Governmental employeee if you have liquid assetts in excess of 40 grand then your benifits you can pay for and not live on public welfare.. pay to enter government hostpitals just like the middle class.. learn what the general pubic knows..
-------> Small internet radio broadcaster. <-------
Try skipping all the hateful commentary and go with some prayer.
Thanks.
How about not posting at all if you don't have anything to say about the issue. Your comment may be the most incomprehensible one on this thread! And that's saying something considering the post just prior to yours
Let's do a situational analysis for terrestrial broadcasters and see if they should be embracing the internet not trying to eliminate it from their future: stocks in the toilet. companies are overleveraged and losing share to new platforms including satellite and ipods and internet (ignored all of them), digital broadcast/HD radio is all but dead and uncompelling vs IP. Their own industry group has been asleep in trying to make internet a viable platform.
This "fix" lowers current royalties to more favorable levels Translation: higher margins, make money. That's good for terrestrial broadcaster's webcasting business. Gas tanks like gas, not sand. Improve margins and leverage IP, the ultimate broadcast tower. Support this bill.
the omnipresent government doesnt need to address this issue
royalty rates between parties should be hammered between the parties involved.
- by cdegraff2 September 29, 2008 6:41 AM PDT
- With all the crap on the local radio stations, I don't know what I would do without internet radio. I hope this bill will be a help but worry whenever government gets involved.
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