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We've already had dozens of NAB attendees let us know they'll be joining us for the RAIN Reader Cocktail Party, tomorrow 5-7p at the Gordon Biersch Brewery Restaurant. It's just one block west of the main convention hotel, the Sheraton (click the link for directions). No need to RSVP, just join us! Hope to see you tomorrow.

SoundExchange article: Streaming NOT downloading, and NOT CD quality
BY PAUL MALONEY
In a newsletter published by the arm of the recording industry established to collect webcasting royalties, an article intended to familiarize artists with streaming technology explains that streaming audio is not the same as downloading, that the quality of streamed audio is inferior to that of compact discs, and that the prevalent streaming technologies (at least claim to) provide copyright protection of streamed content.

The article is certainly well-written, informative, and should prove valuable to artists to are trying to get a better grasp on how their music might be used in the digital age.

But some feel the points raised are significant because it is widely believed a central argument used by record industry lobbyists in convincing lawmakers to pass 1998's Digital Millennium Copyright Act was that Internet webcasting involved the transfer of perfect digital copies which users could keep and trade, thereby cutting into music sales.

The piece appears in SoundExchange's "NewsExchange" newsletter (August 2002 Volume II Issue II, here in Adobe Acrobat format).

The article, called "How Are They Streaming Your Music?," explains that streaming content "can only be listened to...while (it is) being received," as opposed to files downloaded from file-sharing services like Napster and Kazaa, which consist "of receiving a complete piece of audio or video for storage on your computer. A downloaded file can be played back later."

(Note: the article does deal with "caching," or "buffering," the temporary storage of streamed content to account for inconsistencies in the transfer rate of the data and to ensure smoother listening. However, it is acknowledged that this is indeed also temporary.)

Later, it's explained, that given that most home Net users receive data via slow dialup connections, "for these listeners the best quality that can be achieved is less than FM broadcast quality. Meanwhile, CD audio requires more than 20 times the amount of data that today's modems can handle." This fact serves as an introduction to the concept of file compression, and notes that even broadband connections "do not eliminate the need for lower data rates."

The first step taken by "almost all technologies," according to the piece, for reducing the size of files for streaming, is the reduction of "the sampling rate to 22,100 samples per second and converting the stereo audio to mono. This cuts the data to one-fourth the size of CD audio."

The article concludes with a quick description of the Real, Microsoft Windows Media, and Apple QuickTime technologies. The author acknowledges (in his description of the first two systems at least) that the technology "purports" to provide protection of content against unauthorized use.

Again, many DMCA opponents assume that the idea (perhaps along with other arguments) that streaming would allow the transfer of "storable, perfect digital copies" of music swayed Congress into mandating that webcasters would be obligated to pay the owners of copyrighted music for the use of their property (even while over-the-air broadcasters have never had this same obligation).

Regardless, the article is a positive step in allowing insight for artists (and others) to better understand what's involved with the streaming process.

Indie label owner's view of promotional power of Net seems to contradict Simson's argument
Interestingly, the main feature
of this issue of the SoundExchange newsletter is an open letter to members by executive director John Simson (pictured here in our overused photo). In it he reiterates the record industry's main arguments on webcasting royalty rates and the proposed Internet Radio Fairness Act (see RAIN here).

He calls webcasters' claims that play on Internet radio can promote record sales "old radio propaganda," since independent label sales of the "niche" music played by webcasters to growing Net radio audiences is suffering as badly as that of mainstream music.

He goes on to suggest that webcasting may actually hurt sales "when niche stations stream categories of music. If there is a great Chicago Blues channel that a listener can access at anytime, that listener may not feel the need to buy Chicago Blues CDs when she/he can simply tune in that channel at any time."

Yet, there seems to be at least one SoundExchange member who feels exactly the opposite. Another article in the very same newsletter is an interview with Terry Lieberstein, owner of independent label Lovingstone Records. When asked "How do you see the growth of the Internet affecting you and your label?," Lieberstein seems to see positive potential for his specialized, niche market children's music on the Internet. He said:

"I am cautiously optimistic. I think there is a lot of opportunity on the Internet for greater exposure as an independent; at the same time, my experience is that it takes a lot of promotional effort to drive people to your site. I think the biggest potential (is) for distribution of product and airplay into niche markets that are generally more challenging to reach (for example, in the children’s market, the shelf space is dominated by Disney, Henson and Warner Brothers). Like many independents, I just want people to have the opportunity to hear my music."

 

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BRS says copyright issue leading to exodus of US-based Net radio
From a press release on BusinessWire: " BRS Media's Web-Radio released their latest statistics today at The NAB Radio Show. As predicted, the numbers indicate that the current copyright crisis is having a direct impact on the number of stations broadcasting online. And, for the first time since BRS Media began tracking Internet Radio back in 1995, US based stations now represent less then fifty percent of the stations webcasting online.

"In the last year alone the number of radio webcasters has declined by thirty one percent (31%), with US stations accounting for the majority of this steep decline. Prompted by the current copyright issue, well over one thousand US stations quit broadcasting online. And while the current number of radio stations broadcasting their signal on the Net sits at 3940, that number is significantly lower than the all time high of 5710 stations from last year.

"Prior to this year US based stations represented nearly 60% of all stations webcasting...

"Remarked George T. Bundy, Chairman & CEO of BRS Media Inc., 'As long as this copyright issue continues to hang over the heads of US based webcasters we foresee the current decline continuing. However, on the International side steady growth continues, as many of these markets will likely benefit from the current turmoil plaguing the US market.'"

Read this entire press release here.

 


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This is Part 3 of 5 in a series...
RAIN Guest Essay
Royalty Voodoo Economics: When a performance isn't a performance
BY JOEL WILLER
for Radio And Internet Newsletter

The University of Louisiana's at Monroe
's student radio station, in anticipation of new copyright royalty recordkeeping regulations, has recently expended considerable effort to review the station's streaming server access logs. Among other things, this analysis led station personnel to question when is a performance not a performance?

It seems that for each and every month spanning the past two years the station has experienced one or more streaming sessions extending for at least 24 hours. Eighty-eight percent of the past 24 months had at least one session lasting more than 36 hours, 46% of the months had at least one session lasting 48 hours, and so forth.

Indeed, one month for which KXUL will soon have to pay retroactive royalty fees recorded a single session lasting 143.95 hours, that's six straight days! Without benefit of a protracted government study, the KXUL staff has concluded that just because a streaming client is connected to the station's streaming server, that doesn't mean someone is listening.

If a tree falls in the woods, and no one hears it, is it still a performance?

Marathon connections
Under the sound recording performance rate determination adopted by the Librarian of Congress it is. The record generated by KXUL proves the folly of a royalty rate tied to "performances" in this new technological frontier. Especially for low-volume streaming services like many college radio stations, just a few such marathon connections each month -- I cannot call these listening sessions -- dramatically and unfairly skew the "performance" numbers in favor of the copyright owners.

The expected proliferation of always-on broadband Web connections will only increase this phenomenon, as Internet radio stations continue to hum along long after office cubicle occupants have gone home to pat their kids on the head and toss a Frisbee to ol' Fido.

In the CARP proceeding, the RIAA urged that only a per- performance model be adopted. The final CARP report states that "a per-performance metric 'is directly tied to the nature of the right being licensed.'" This can only be true if a "performance" can be accurately measured, which it cannot be.

To compound the insult, yet-to-be-announced Copyright Office recordkeeping regulations promise to bury small noncommercial webcasters with an immense data collection burden premised on describing these "performances." The Recording Industry Association of America argues that such information is vital for its SoundExchange division, which will be responsible for distributing royalties generated by these "performances."

What performances?

Joel Willer is an Assistant Professor of Mass Communications at the University of Louisiana at Monroe and general manager of the school's radio station KXUL. There will be two more installments to this series. Read Part 1 here, and Part 2 here...

 


We'll send you a brief daily summary of each day's stories with a clickable link to the RAIN home page.
 

...
Silenced by royalties

Here is a growing list of webcasters who, because they don't feel they can manage webcasting royalties in a viable business, have decided that it's in their best interests to silence their streams. (We thank them for their hard work and dedication to their audiences and the industry, and wish them luck in their future endeavors...)
247PolkaHeaven.com All80s.com AudioCandy.com
BlueMars.org BrazilCast 1 & 2 Celtic Heritage Webradio
Chez Whitey CIRNH.com Citadel stations
Clownmask Radio Entercom stations Gleiser Communications
Good Time Oldies Radio Greater Media stations GrrlRadio
HitRadio.biz Hot Hit Radio IdahosCast.com
Ithaca College Radio Jones College Radio KBCS/Bellevue
KBVR/Corvallis KDFC/San Francisco KEDM/Monroe
KEOM/Mesquite KETR/Commerce KGRK/Cedar Falls
KHUM/Humboldt. Co. KKDV/San Francisco KKNX/Eugene
KKNG/Oklahoma City KKPT/Little Rock KKUP/Cupertino
KMGO/Centerville KNHC/Seattle KOIT/San Francisco
KOKF/Oklahoma City KOMA/Oklahoma City KPIG/Freedom
KRCL/Salt Lake City KROK/DeRidder KTPW/Dallas
KTRS/St. Louis KTXN/Victoria KVVP/Leesville
KUMX/South Fort Polk KWXY/Cathedral City Lotus Radio stations
Maranatha stations McClure stations Midwest Family stations
Minion Radio MonkeyRadio.org MoreMusicRadio.net
MYNDFK.com NetRockRadio.com NextMedia stations
OnTheCorner.fm Perkigoth.com PissMonkey
Powerrocks.com Progrock.com Psychedelic Time Warp
Pulverradio.com RadioAmerica RadioBoston.com
RadioCentral.com RadioMAX Radio Free Akron
Radio Free BD Radio Free Tiny Pineapple Radio Isla Negra
ReggaeTrain.com Renda Broadcasting RKNA: Aural Arcana
SavageRockRadio.com Shwango Radio Simmons Media stations
SomaFM.com StarDogRadio.com TagsTrance.com
The City Radio The Lost 45s The Radio People stations
therockfm.com TheVoice The Zoo
UCLARadio.com WAAF/Worcester Waitt Radio Network
WAME/Statesville WBEB/Philadelphia WCKW/La Place
WDCE/Richmond WDWN/Auburn WellsRadio.net
WELW/Cleveland WEST/Easton WEZS/Laconia
WGQR/Elizabethtown WIYY/Baltimore WJTL/Lancaster
WLUP/Chicago WMHB/Waterville WMMR/Philadelphia
WOVRadio.com WRLT/Nashville WRSI/Greenfield
WRUR/Rochester WRVG/Georgetown WSBF/Clemson
WSWI/Evansville WUVT/Blacksburg WVKR/Poughkeepsie
WXRV/Haverhill WYYB/Phoenix WZBC/Newton
WZIP/Akron WZMR/Albany Yahoo! Radio stations
Have we missed others? Use the feedback form above or e-mail us here.

Other public stations now off line
This is from the SOS: Save Our Streams website, which focuses the struggle against thewebcasting royalty rates as they pertain to independent educational and noncommercial stations.
KAPU-CA; KSDS-CA; KTAI-TX; KTSW-TX; KWJC-MO; KXCI-AZ; KXRJ-AR; WEBR-VA; WERS-MA; WEVL-TN; WMHW-MI; WMUA-MA; WNYU-NY; WONB-OH; WPTS-PA; WRMC-VT; WSRN-PA; WSTB-OH; WSUM-WI; WSUW-WI; WUTK-TN; WXOU-MI
 
Upcoming conferences
Sep. 12-14, 2002 NAB Radio Show 2002: Seattle, WA
Sep. 26-Oct. 6, 2002 Museum of Television & Radio 8th Annual Festival:
New York, NY
Oct. 1-4, 2002 Streaming Media East: New York, NY
Oct. 20-22, 2002 NAB European Radio Conference: Prague, Czech Republic
Oct. 30-Nov. 2, 2002 CMJ Music Marathon 2002: New York, NY

 

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