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Webcasters say they'll go bankrupt or close down if the CARP royalty plan is approved
By Jon Newton, p2pnet.net
(more articles from this author)
2002-05-10
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Music Industry News - as it happens
Source: MI2N - May 9, 2002

More than a dozen indie Net radio companies say they'll permanently close their doors if the proposed copyright royalty is finalized next week by the United States Copyright Office.

The companies say they're not looking for a free ride. Rather, "We are simply asking for what is fair so that we can grow our industry," said Kevin Shively, Director of Interactive Media, Beethoven.com, Hartford, CT.

"Satellite radio was given the ability to pay on revenues and those companies are major corporations with deep pockets. We have built our services in many cases to promote and support artists who don't get as much commercial radio airplay and who don't always see the millions of dollars that record companies use in promotion to accomplish the commercial radio airplay. We are trying to build income for those artists and we would like the opportunity afforded to other media so that we, too, may be able to grow our businesses."

Wanda Atkinson, founder of the St. Louis, Missouri-based service (www.3wk.com), said, "After three years of hard work, overcoming numerous technology glitches and finally seeing bandwidth prices drop, it is terribly painful to recognize that the sound recording royalty will bankrupt 3WK.

"We love the music, we love the artists we promote, and they and their fans love 3WK. But thousands of dollars per month in royalties plus well over a hundred thousand dollars in retroactive royalties equals Chapter 7 bankruptcy - immediately."

Rusty Hodge, General Manager / Program Director, SomaFM, San Francisco, CA, said, "We started out playing only artists on small labels that were not affiliated with the RIAA.

"We helped artists and labels, as evidenced by e-mails from listeners saying they bought as many as ten new CDs after listening to our station, and e-mails from labels thanking us for helping break new bands. Now many of those artists' rights have been purchased by RIAA labels and this royalty is threatening to put us out of business. How will that help artists?", said

Webcasters who say they'll close down, or stop webcasts, include:

Beethoven.com
Kevin Shively
Director of Interactive Media
Hartford, CT

SomaFM
Rusty Hodge
General Manager & Program Director
San Francisco, CA

WOLF FM
Steve Wolf
Founder & President
Nashville, TN

3WK
Wanda & Jim Atkinson
Founders
St. Louis, MO

Inetprogramming Incorporated
Bob Pullman
President
Renton, WA

Aloha JOE(r)
Aloha Radio Network(r)
Joe Seiter - President
Lakewood, CA

RadioIO
Mike Roe
Owner
Jacksonville, FL

Internet Radio Hawaii
Robert Abbett
Owner / Operator
Kailua, HI

Ultimate 80's
Dave Landis
Founder
Los Angeles, CA

HardRadio.com
Tracy Barnes
President
Dallas, TX

SmoothJazz.com
Sandy Shore
President
Monterey, CA

Radio Paradise
Bill Goldsmith
Owner
Paradise, CA

Onion River Radio
Frank Schliemann
Owner
Montpelier, VT

Megarock-Radio.Com
Robert Winkelmann
St. Louis, MO

RadioStorm
Michael Donahue
Founder
Sussberry MA

CyberRadio2000
Sal Lepore
Chicago, IL

RAIN RADIO
Kurt Hanson
Founder
Chicago, IL

TwangCast.com
Michael Hays
Co-Owner
Orange, VA

KPIG.com
(would suspend all webcasting)
Laura Hopper
Program Director
Freedom, CA

Related News from Mi2N:
» Headline Reads Carp-Royalty Approved


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