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ldaesch Blog

A potential settlement for internet radio?

At the behest of Rep. Ed Markey (D-MA), the House Commerce Committee is calling on representatives from the webcast and recording industries to meet today to discuss a settlement that would provide internet radio operators with a workable alternative to the proposed CRB rates scheduled to go into effect on Sunday.

For more information, visit RAIN

Live365 finally speaks...

Mark Lam, CEO of Live365, sent the following letter out to broadcasters:

As the clock winds down during this final week before the July 15th deadline, I wanted to update you on Live365's service plans and our continued activities to oppose the unsupportable new sound recording royalty rates set by the CRB.

In answer to the top question on broadcasters' minds: we have no plans to shut down on July 15th when the billions in per channel minimums and significantly higher rates come due, unless forced to by SoundExchange.

We believe Congress and the public share our outrage over the fundamental inequity in performance royalty rates. Why is it that terrestrial radio pays NO royalties and satellite and cable radio pay much lower royalties than Internet radio to SoundExchange? Many artists have also contacted us to voice opposition to new CRB rates that will decimate Internet radio and eliminate their chance to be heard. The momentum of public opinion and business sense is on our side and we plan to continue to fight for artists, webcasters and their audiences until a resolution is found.

In the meantime, let us assure you: webcasters covered under the Live365 SoundExchange license will not be responsible for any retroactive fees. Upon resolution of the new rates, Live365 will honor its obligation to provide advance notice of any change in pricing with the option for you to continue services or not, prior to imposition of any increases.

Here's what's going on this week on the negotiation, legal and legislative fronts.

First, negotiation has been proceeding slowly even though SoundExchange has been requested by Congress to negotiate with webcasters. I am in Washington D.C. this week with other SaveNetRadio Coalition partners to make myself available for face-to-face negotiations with SoundExchange. We'll keep you posted.

Second, we are continuing with litigation. Although the D.C. Circuit Court just denied our Petition for Emergency Stay of Payments under the new rates, as was expected, we will vigorously proceed with our appeal.

Third, we are still actively pursuing Congressional cosponsors and support of the Internet Radio Equality Act. The bill would throw out the unrealistic CRB internet radio rates and replace them with those paid by satellite radio.

All of us have worked hard to protect the medium that we love. Broadcasters have spent amazing amounts of time and money on PSAs, website updates, interviews, testimonials, letters and calls to Congress. Thank you all for your valiant efforts. In turn, Live365 has invested countless hours of staff time and cash from testifying in the initial hearings over a year ago to our current presence in D.C. As the largest supporter of independent artists through their primary fans-our webcasters, Live365 will continue the battle until there is a resolution. We will continue to fight for parity and fairness as well as be the voice of reason! We firmly believe that we are on the right side of history.

Please stay tuned!

All the best,

Mark Lam
CEO, Live365

P.S. It helps tremendously to have you in front of the media telling your story. Remember that SaveNetRadio.org has a great tool at www.capwiz.com/saveinternetradio/dbq/media/ to help you contact your local media. Please check it out!

Also, be sure to visit www.live365.com/broadcasterchoice for more up-to-date info on Live365's continued activities to oppose the unfair CRB royalty rates.

Release date for Voltron Vol. 4 DVD set

Vol. 4 of the Voltron DVD set is set to be released on September 25, 2007, and the box art will feature the red lion.

The set is available for pre-order from Amazon:

http://www.amazon.com/Voltron-Defender-Universe-Vol-4/dp/B000SM7R2O/ref=sr_1_6/002-3679176-9361615?ie=UTF8&s=dvd&qid=1183702963&sr=1-6

AeschTunes: Good News / Bad News

This update is a double-edged one, so I thought we'd get the good news out of the way first.

The good news:

Today marks the sixth anniversary of the AeschTunes Top 40 chart. We've compiled a special six-year anniversary chart of all the songs that have been on the chart during that time and how they rank overall. If you'd like to see it, visit the AeschTunes website, click on "Charts," then "Special Charts," and find the six-year anniversary chart in the table.

And now, for the bad news:

But this anniversary is a bittersweet one. After some serious deliberation, Dan and I have decided to bring the AeschTunes internet radio station and chart to an end. Between the uncertainty around the forthcoming increase in internet radio royalty payments (which is set to take effect on July 15), as well as increased committments in our personal lives, we felt this was the best action to take. While this isn't something we necessarily *WANT* to do, the reality is that shutting AeschTunes down is something that we *HAVE* to do.

We went through a similar thing in college, when the student council shut down an AM carrier-current station that we DJ'ed on; at that time, we thought our involvement with radio was over (I did have some air-time on the college's 10,000 watt FM jazz station, but that ended about a year after the AM station shut down, because I graduated). Discovering Live365 a few years ago seemed like a godsend, and we were able to develop AeschTunes into the kind of station that we wanted it to be. In the nearly four years that we were on the air, we met almost all of the goals we set for ourselves. We're very proud of what we accomplished, and have no regrets. Believe it when we say that shutting down AeschTunes was not an easy decision for either one of us to make.

Our plan is to bring everything to a close on Tuesday, July 31 (unless Live365 has to pull the plug on their service before that date). While Dan and I are making some plans concerning the shutdown, we really don't want to divulge anything until we have a better sense of what exactly is going on in regards to Live365 and the impending deadline for the new royalty payments. We will pass on more information as we have it.

We apologize to our listeners, as well as to the artists who have worked with us over the years, for the effect our decision will have on them. Dan and I have enjoyed our experience as internet broadcasters, and are grateful for the artists and people we were able to meet because of it.

Thank you all for your understanding.

Internet Radio "Day of Silence" is having an impact

The response by listeners to today's "Day of Silence" has overwhelmed the web and database servers being used by SaveNetRadio.org, as well as tying up switchboards in Congressional offices all over Capitol Hill as a deluge of online radio listeners have contacted their representatives to ask them to co-sponsor the "Internet Radio Equality Act." Beginning just before 10AM CT, the SaveNetRadio.org site saw huge numbers of visitors arriving to the site, coming from links set up by webcasters participating in the "Day of Silence." Not too long after that, the section of the site that enables users to look up contact information for their Representatives and Senators, was crippled by large numbers of users trying to simultaneously access their reps' information. According to a representative from SaveNetRadio, "This is by far the biggest one-day load [CapWiz] has ever been hit with, and they are adding servers and moving all available resources ASAP." The website is in the process of revising its home page to ask listeners to try again later this afternoon or tomorrow. And listeners who have gotten the contact information for their representatives and senators have had trouble getting through to the offices. More information on this issue -- plus a review of the additional press coverage of this event -- will be coming soon in RAIN (http://www.kurthanson.com)

Internet radio day of silence today

Just a reminder that today is an internet radio "Day Of Silence." Live365, our provider, is offering a special "Day of Silence" stream for all standard listeners. We have a PSA that is airing on this stream. So if you get a chance, you need to listen in so you can hear it. :)

For our VIP listeners, we have put together our own special "Day of Silence" playlist.

Of course, this means that AeschTunes: Revisited is not airing today. We apologize for any inconvenience this may cause.

And please do your part today to contact your Representative and Senators and ask them to support the Internet Radio Equality Act. For more information, visit www.savenetradio.org

Internet radio day of silence (6/26) - a station testimonial

Live365 has asked stations to send in testimonials for possible inclusion on a webpage they have set up. I sent one in a couple of days go, and so far, it has not appeared. I decided I would also post it here, so at least it can get some exposure somewhere (just in case Live365 decides not to run it). Live365 has also asked for audio testimonials for inclusion in a special "Day of Silence" stream they are putting together for free listeners to hear on June 26; we have submitted an audio PSA as well.

Anyway, here's the written testimonial that was submitted to Live365:

We run a small internet radio station at Live365.com (www.live365.com/stations/aeschtunes). We broadcast music by both independent artists and major label artists. For many of the independent artists we play, internet radio is one of the very few viable avenues available to help gain a wider exposure for their music. Since the station went on the air, we have played music by a number of independent bands and artists, and have even become friends with a few of the artists that we have played. From talking with some of the artists, they agree that the new proposed royalty rates will not help them; in actuality, the new rates will hurt them. By leveling these new rates on internet radio and driving many stations off the air, independent artists will have fewer avenues to be played, and therefore, less potential to receive royalties. So, in reality, the independent artists will make less, not more, money if these new royalty rates are adopted. A number of major label artists started out in the independent scene, scraping and working their way to a point where they could be signed by a major and have wider exposure to their music; some of them even had to utilize avenues like internet radio to reach that point. And some of those artists ended up helping to revolutionize music as we know it. If internet radio is run out of business, not only could you see a negative effect monetarily on the music business, but it could also potentially hinder the ability of the future pioneers of music to be able to get to a point of being able to bring about new innovation to music and the music industry.

In order to bring our unique mix of major label and independent artists to internet radio, we have to pay a monthly fee to Live365. In the nearly four years we have been broadcasting, we have made NO money from the station. We provide the station on the internet as a "labor of love" to share our favorite music with the masses, regardless of whether the artists are independent musicians or have major label contracts. If it was about the money for us, we would've gotten out of the game years ago, since there is no money to be made as a small webcaster.

Our listener base is small, but the proposed royalty rate changes would put us out of business; if Live365 doesn't shut down in response to these new royalty rates, then they would probably have to raise their monthly fees to a level that we would be unable to afford to keep our station going. Of course, not only would we be run out of business, but a number of stations on the internet would disappear as well. It is unfair that webcasters are looking at a potential 300% increase in their royalty rates, while terrestrial and satellite radio are being asked to pay a different, lower rate.

Internet radio day of silence on June 26

There will be an internet radio "day of silence" on Tuesday, June 26 to protest the new royalty rates (which could increase royalty rates for small webcasters up to 300%) that will take effect on July 15. Live365 has announced that they will be participating in the day of silence. From 3 a.m. Pacific Daylight Time until midnight, all Live365 stations will go silent. Free listeners who tune in during this time will be redirected to a Day of Silence stream that offers an explanation, broadcaster testimonials, and a call to action. VIP listeners will receive a Day of Silence PSA and then will be connected to the station's regular programming.


However, we at AeschTunes do not agree that VIP listeners should be able to hear the regular programming during the day of silence; this defeats the purpose of the Day of Silence (if internet radio is silenced, then it doesn't matter whether or not you're a VIP listener, because there won't be any streams to listen to). So, we are putting together a "special" playlist for June 26 in the event that any VIP listeners tune in. And we will be starting our "special" stream at midnight PDT on June 26, so non-VIPs can potentially hear our "special" stream for three hours before being redirected to Live365's Day of Silence stream.

Of course, this all means that AeschTunes: Revisited will not be on the air on June 26. We apologize for any inconvenience that this will cause our listeners.