[BC] Re: [BC The END of Internet Radio?

[Cornelius Gould]

I wanted to mention that it is changing from a percentage of revenue to a
per listener / per stream.

The old model was a percentage of revenue...if no revenue, then we must pay
a percentage of our operating expenses.

-Cornelius

On 3/9/07, Cornelius Gould <cornelius at cgould.com> wrote:
>
> Rich...
>
> A majority of the small guys *ARE* paying for the fees.  What is changing
> is the method of payment...from a percentage of revenue (if no revenue, then
> a PERCENTAGE of the EXPENSES OF OPERATION).
>
> The small guys (including my stream) ARE paying...believe me.  it just
> irks us when folks like you spew inaccurate facts!
>
> -Cornelius
>
> On 3/9/07, Rich Wood <richwood at pobox.com> wrote:
> >
> > At 09:54 PM 3/8/2007, you wrote:
> >
> > >Yes, as long as internet radio is another portal for terrestrial radio
> > >only.  To hell with the little guy, he's out of the picture now that he
> > >can't afford it.  Do you think these new rates hurt the big guys?
> >
> > Absolutely. My former company stopped all music streaming because of
> > the fees. An Internet-only "station" we had stopped streaming. The
> > bigger you are, the higher the total fee. Generally, streams make no
> > money. They do extend the brand. A radio station has a far better
> > promotional vehicle to drive people to the net than "the little guy."
> > They pay by the song times the streams. The little guy is often doing
> > it as a hobby using other people's product for which he pays nothing
> > - until now.
> >
> > I've been involved with radio streaming since it began. I've watched
> > companies go belly up because bandwidth cost too much at the time.
> > The classic "big guy" death was broadcast.com after Yahoo bought it.
> > It didn't make money. Probably the last straw was the additional
> > music fees that made an unprofitable operation a serious drain on the
> > company. I spoke with Mark Cuban about what he thought the fees might
> > be. He was frustrated because no one could tell him how much the fees
> > would be. In addition, they were to be retroactive. These were the
> > Hillary Rosen days.
> >
> > The seminar I mentioned earlier at the Radio & Records Talk Radio
> > Seminar in Los Angeles had a panel of about 10 folks in
> > decision-making positions, as well as research companies. Not a
> > single person argued against the fact that the Internet was critical
> > to the broadening of the station's brand. It includes streaming,
> > podcasting, text messaging and anything we might dream up later.
> >
> > I believe the RIAA is going to see it's shooting itself in the foot
> > and will come up with a more realistic fee schedule. I do know fees
> > are not going to go away. The "little guy" who does it because the
> > world needs his personal music mix is going to see his allowance dry
> > up. Whether we like it or not music is someone else's property. You
> > use it, you pay. Simple.
> >
> > Rich
> >
> >
> >
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> >
>
>
> --
> --
>
>
> - Cornelius Gould
> ________________________________
> "The significant problems we face cannot be solved at the same level of
> thinking we were at when we created them."
> - Albert Einstein (1879-1955)




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- Cornelius Gould
________________________________
"The significant problems we face cannot be solved at the same level of
thinking we were at when we created them."
- Albert Einstein (1879-1955)