US based web radio is about to get a massive hit and it will be interesting to watch how it plays out:
The new fees, which will apply until 2010, will charge a flat fee per-song, per-user in addition to a $500 fee for every channel owned by a station. Fees will increase every year until 2010. Radio stations with multiple channels, such as NPR, would be charged thousands of dollars, which they claim will cripple them. Previously, stations paid an annual fee plus 12% of their profits. The fees will start on 15 May 2007 and will be collected retrospectively for 2006. Webcasters will be allowed to calculate retrospective payments by averaging listening hours.
My first reaction is to call NCPR and make sure I pay my fair share. That one station is the main source of music in my life now. I rarely by CDs anymore as I have about 400 plus 150 lps and cassettes and 45s and I pretty much never get around to using them as much as I might – though I have to admit the vinyl did spin last Friday night. [Ed.: T-Rex was right – we were born to boogie.] But what of the amateur hobbyists like Darcey’s Friday Night Blues and Beer or Steven’s Acts of Volition Radio? Sure these are both Canadian but how and when will a fee like this apply? How can I pay it when it does arise.
Don’t get me wrong. I think there should be a fee. Sadly, there were plans to have nice and useful hidden fees attached to purchases of media of one sort or another but the hyper-libertarians and whacko self-proclaimed “user rights” advocates got to that idea and gave it the boot – my nickles! my dimes!!! they shouted so that a direct fee structure will be imposed granting people the right to be coat tail on both the artists and the medium that provide the access to the good stuff. So now we are stuck with the wrong end of the pipe holding the bag and a reasonable likelihood that the access to intelligently selected music on the web will dry up.
How should we pay the piper anyway?