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Audio/Video, Web

Internet Radio Will Continue, Thanks to New Agreement With Labels


After years of quibbling with record labels, sweating a 2007 government-proposed royalty hike, and dealing with their increasingly uncertain future, Internet radio stations are finally off the hook, the New York Times reports.

These stations -- among which Pandora and Slacker are probably the best known -- enable users to enjoy custom-tailored streams of music, free of charge. Because the sites receive most of their revenue from advertising, and from quasi-commissions paid by online music retailers like iTunes and Amazon when listeners purchase a song, the formerly proposed royalty increase of $0.19 per song presented financial hurdles widely thought to be insurmountable.

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Audio/Video, Computers, Google, Web

'Never Gonna Give You Up' Songwriter Says Google Exploited Him



Pete Waterman, the songwriter (and apparent cry-baby) behind the Rick Astley hit 'Never Gonna Give You Up,' is claiming that the tiny royalty check he received from Google and YouTube amounts to exploitation.

Now, to be fair, Waterman did only receive £11 (about $16) in royalties last year from Google, despite being the man behind the song that spawned the Internet phenomena known as Rick Rolling. The number might be a tad on the low side, but we'd hardly call it exploitation. PRS for Music (the royalty collection agency that Waterman employs) and Google are working to reach a new licensing agreement, but have yet to strike a deal regarding how royalties should be dolled out for streaming online content.

Waterman, who in 2004 was estimated to be worth £47 million (just shy of $69 million), recently held a press conference in which he compared his plight to that of exploited migrant labor in Dubai.

Look, Mr. Waterman, we understand you might feel like you're getting the shaft here, but let's not be ridiculous. You're a multi-millionaire songwriter, not a construction worker. If you want to argue for higher royalty payments, that's fine, but comparing yourself to exploited day-laborers isn't going to win you any supporters. In fact, it just makes us kind of want to punch you. [From: Telegraph]

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Audio/Video, Computers, MySpace, Google

Radiohead, Robbie Williams and Others Unite Against YouTube



Some of the most popular musicians in the UK have decided to collectively protest what they see as poor treatment both from online music streaming sites (YouTube, MySpace, etc) and from the record companies that do business with them, according to CNET. Essentially, the artists have joined to create the most creatively inspired group of lobbyists, ever.

The Featured Artists Coalition (FAC) is comprised of, among others, Radiohead, KT Tunstall and Robbie Williams, and was organized by Billy Bragg. Tomorrow will be the coalition's inaugural meeting, and the artists involved are hoping it will result in greater profits for them (they sometimes receive no compensation whatsoever from streamed music) and in a better understanding of how contracts should be structured in an increasingly digitally-dominated era.

The conference, set to take place today at a secret location in London's West End, comes days after YouTube blocked music videos from streaming in the UK. Prior to the decision, YouTube had been in negotiations with Britain's Performance Rights Society (PRS), which collects royalties for the UK's music industry, but found their demands unpalatable. Pandora has already pulled out of the country due to what they view as prohibitive compensation demands, and MySpace is expected to follow suit. The PRS maintains that their demands are fair, considering the massive amount of ad revenue that streaming music generates for Google (who owns YouTube) and other popular sites.

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Audio/Video, Computers, Celebrities

Eminem Wants More Download Money, Sues Universal


Yesterday, in California, Eminem's royalty rights lawsuit against conglomerate Universal Music Group went to trial in U.S. District Court, reports the Wrap.

Asking for $1.3 million from the parent company of Aftermath Records, to which Eminem is signed, the suit's fundamental claim is that royalties from downloads should be dictated by the artist's licensing contract, not distribution contract.

While the exact figures stipulated by Eminem's contracts have not been reported, according to a report in The Wrap, a traditional licensing deal would entitle the artist to 50-percent of the royalties, while a typical distribution deal could entitle him to as little as 25-percent.

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Audio/Video, Computers, iPod, iPhone

Apple Threatens to Close iTunes Over Increased Royalty Rates


The Copyright Royalty Board (CRB), a three person panel that controls royalty rates for music sales, is set to make a judgment today that could potentially raise royalty rates on digital music by 66-percent. Currently, the rate rests at 9 cents per track, but the National Music Publishers' Association wants the rate raised to 15 cents.

The problem is that someone, either the consumer, the record companies, or digital music resellers, will have to absorb the cost. Apple, in particular, is livid with the possibility of this increase. The purveyors of the iPod and the iTunes music store claim that they already pay 70-percent of the revenue from iTunes to the record companies and that the rate increase could cause iTunes to cease being profitable. If that became the case, Apple has said they would consider closing the iTunes store.

Apple believes that the rate increase would force them to raise prices, which would drive the number of purchases down. According to the Industry Standard Apple vice president, Eddy Cue, said "Apple... is in this business to make money, and most likely would not continue to operate [the store] if it were no longer possible to do so profitably."

It's hard to believe that Apple would simply shutdown a property that it has spent so much time and manpower developing, but the threat to close down the world's most popular digital music store is a significant one. Even if it's an empty threat. [From: Industry Standard]

Update:
Well, the CRB came back with a decision today that should make Apple (and RealNetworks, and Napster, etc...) very happy. The board voted to freeze the royalty rate at 9.1 cents per track, where it will stay for at least the next five years.

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