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Old 01-11-2007, 04:13 PM   #1
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Default Oh Boy! RIAA, I mean the Senate, Wants Higher Royalties for Satellite Radio

<a href=>Via FMQB</a>

<i>A bill has been introduced to Congress which would set new rules for satellite radio, creating new rates and content protection standards similar to those of Internet radio. The legislation was sponsored by Sens. Dianne Feinstein (D-CA), Lindsey Graham (R-SC), Joseph Biden (D-DE) and Lamar Alexander (R-TN).

The bill is part of the ongoing debate over the ability of satellite radio subscribers to record high-quality, digital copies of songs directly from broadcasts. The RIAA and other organizations have spoken out against the possibility of recording directly from satellite broadcasts, and has asked for similar rules to be put into play that are in effect for Internet radio broadcasters.

The RIAA has hailed the bill, with Chairman/CEO Mitch Bainwol stating, "This early play by Sen. Feinstein and her colleagues should leave no doubt that policymakers continue to view parity among digital music services as a top priority. And a top priority it should be. Under the current system, satellite radio has been allowed to morph into a digital distribution service – shorting the creators of music, displacing licensed sales and threatening the integrity of the digital music marketplace in the process. We love satellite radio. But this is simply no way to do business. It’s in everyone’s best interest to ensure a marketplace where fair competition can thrive.”

<b>Update:</b> <a href=>Senator Feinstein has a press release about it.</a> They basically want to unify the rates for different mediums, including radio on cable, satellite, and internet, but they are not going to do it with terrestrial radio. Feinstein calls it "fair market value", and wants the broadcast hard to 'steal', which I find hard to do with Sirius already. It's much easier to log onto Limewire and download a song in 160 or higher bit rate, than record a song on your S50 or Stiletto at less than half the bit rate and with fades, parts of liners, or DJs talking at the beginning and end.

Thanks KTMC!

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Old 01-11-2007, 04:18 PM   #2
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Ive never understood this piracy crap. People have been copying cassette tapes since the eighties. More ways for the gov. to control our lives.
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Old 01-11-2007, 04:27 PM   #3
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Bi-partisanship at it's finest! If these guys spent 10 minutes listening to SDARS they'd realize that people aren't interested in stealing low-bitrate copies with DJ's talking over them.
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Old 01-11-2007, 04:41 PM   #4
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If I'm not mistaken, RIAA wants to raise the rate from 1% to 10%. Now I'm not sure where the percentage is taken, but that's quite a hike. Sirius was smart in making the deal with Napset for the Stilleto. I don't see any reason why the RIAA should fret over the current deal. I understand a possible hike, but to 10% from 1% seems sharp.

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Old 01-11-2007, 04:46 PM   #5
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I see two leading democrats and two republicans that should NOT get re-elected.
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Old 01-11-2007, 04:49 PM   #6
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anyone know what FM pays?
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Old 01-11-2007, 05:14 PM   #7
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Default ot but interesting


Cost of a CD
A typical music fan who buys a CD might use that CD at home, take that CD in the car, make a tape of that CD, – or using it as part of a compilation, play that CD with friends and for friends, and keep that CD for many years. That’s probably why most consumers, when asked, describe CDs as a good value. At the same time, when asked directly whether CDs cost too much, some consumers will say yes! Why the contradiction? Because some consumers don't understand why the sales tag on a CD is so much higher than the cost of producing the actual physical disc, a cost, which in fact, has decreased over the years.
While the RIAA does not collect information on the specific costs that make up the price of a CD, there are many factors that go into the overall cost of a CD -- and the plastic it's pressed on, is among the least significant. CD manufacturing costs may be lower, but it takes more money than ever before to put out a new recording.
Of course, the most important component of a CD is the artist’s effort in developing that music. Artists spend a large portion of their creative energy on writing song lyrics and composing music or working with producers and A&R executives to find great songs from great writers. This task can take weeks, months, or even years. The creative ability of these artists to produce the music we love, combined with the time and energy they spend throughout that process is in itself priceless. But while the creative process is priceless, it must be compensated. Artists receive royalties on each recording, which vary according to their contract, and the songwriter gets royalties too. In addition, the label incurs additional costs in finding and signing new artists.
Once an artist or group has songs composed, they must then go into the studio and begin recording. The costs of recording this work, including recording studio fees, studio musicians, sound engineers, producers and others, all must be recovered by the cost of the CD.
Then come marketing and promotion costs -- perhaps the most expensive part of the music business today. They include increasingly expensive video clips, public relations, tour support, marketing campaigns, and promotion to get the songs played on the radio. For example, when you hear a song played on the radio -- that didn’t just happen! Labels make investments in artists by paying for both the production and the promotion of the album, and promotion is very expensive. New technology such as the Internet offers new ways for artists to reach music fans, but it still requires that some entity, whether it is a traditional label or another kind of company, market and promote that artist so that fans are aware of new releases.
For every album released in a given year, a marketing strategy was developed to make that album stand out among the other releases that hit the market that year. Art must be designed for the CD box, and promotional materials (posters, store displays and music videos) developed and produced. For many artists, a costly concert tour is essential to promote their recordings.
Another factor commonly overlooked in assessing CD prices is to assume that all CDs are equally profitable. In fact, the vast majority are never profitable. After production, recording, promotion and distribution costs, most never sell enough to recover these costs, let alone make a profit. In the end, less than 10% are profitable, and in effect, it's these recordings that finance all the rest.
Clearly there are many costs associated with producing a CD, and despite these costs the price of recorded music to consumers has fallen dramatically since CDs were first introduced in 1983. Between 1983 and 1996, the average price of a CD fell by more than 40%. Over this same period of time, consumer prices (measured by the Consumer Price Index, or CPI) rose nearly 60%. If CD prices had risen at the same rate as consumer prices over this period, the average retail price of a CD in 1996 would have been $33.86 instead of $12.75. While the price of CDs has fallen, the amount of music provided on a typical CD has increased substantially, along with higher quality in terms of fidelity, durability, ease of use, and range of choices, including multi-media material, such as music videos, interviews and discographies. Content of this type often requires considerable production expense and adds a whole new dimension that goes beyond conventional audio.
In contrast, CD prices are low compared to other forms of entertainment and one of the few entertainment units to decrease in price, even though production, marketing and distribution costs have increased. In a USA Today article entitled, "Spending a Fortune for Fun: The cost of entertainment is rising along with our willingness to pay it ," the reporter observes, "though some factions of the industry see price resistance -- CD prices are relatively low and home videos rentals are still a bargain -- consumers don't seem to balk at the rising price of fun in this strong, family-friendly economy." The prices of other forms of entertainment have risen, on average, more rapidly than has music or consumer prices, with most admission prices for other forms of entertainment having increased more than 90% between 1983 and 1996.
By all measures, when you consider how long people have the music and how often they can go back and get "re-entertained" CDs truly are an incredible value for the money.
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Old 01-11-2007, 06:02 PM   #8
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I don't know the other three but, being from PA, I'm familiar with Biden... and I'm surprised he's involved with this. He usually takes up more worthwhile issues.

Oh well.

IMO, it just sounds like the government is trying to screw over a new industry. Maybe this will all go away if Mel slips Ted Kennedy a few bills under the table. LOL
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Old 01-11-2007, 06:21 PM   #9
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Absolutely ridiculous! I have recorded a few hours of Sirius on my PC in MP3 format. It was easy to do, and there is nothing the RIAA can do to stop me.
Originally joined as NHTrac on 7/16/2003.
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Old 01-11-2007, 07:53 PM   #10
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I say we all just follow this, take and highlight names online and 'HELP OUT'
their re-election bids.
1 to 10%, I suggest to CUT their salaries by 20% until they do their job they are elected for. recording from vinyl, tape and radio far out distanced this.
Yes the internet did open a whole new frontier, but to whine about profitability,
then maybe record exec's aren't doing their job well either.


Originally Posted by RoadClosed
I see two leading democrats and two republicans that should NOT get re-elected.
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Old 01-11-2007, 08:00 PM   #11
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Send a message via AIM to realwx Send a message via MSN to realwx Oh Boy! RIAA, I  mean the Senate, Wants Higher Royalties for Satellite Radio

I'm with you NHTracker with the fact that one of the top Democrats in Congress would actually introduce this.
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Old 01-11-2007, 11:13 PM   #12
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Great...just when I thought my state would not get involved in something like this....
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Old 01-11-2007, 11:55 PM   #13
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I use to like Joe Biden. I was born and raised in Wilmington Delaware and fwiw just sent him a email on my disappointment on his stand with the RIAA.

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Old 01-12-2007, 12:40 AM   #14
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Washington, DC – U.S. Senator Dianne Feinstein (D-Calif.), Lindsey Graham (R-S.C.), Joseph Biden (D-Del.), and Lamar Alexander (R-Tenn.) today reintroduced legislation to protect copyrighted materials distributed by cable, satellite and Internet radio services, while encouraging the use of new technologies and services.

“The PERFORM Act would require satellite, cable and Internet broadcasters to pay fair market value for the performance of digital music. Additionally, the bill would require the use of readily available and cost-effective technology to prevent music theft,” Senator Feinstein said. “I believe this legislation is a good step forward in addressing a real problem that is occurring in the music industry, and I encourage discussion to ensure that this law will fully serve the needs of our emerging technologies.”

Senator Feinstein continued, “New radio services are allowing users to do more than simply listen to music. What was once a passive listening experience has turned into a forum where users can record, manipulate, collect and create personalized music libraries. As the modes of distribution change and the technologies change, so must our laws change.”

“Unfortunately, the PERFORM Act stalled in the last Congress. However, I am hopeful that the Judiciary Committee under Senator Leahy's leadership will make time to examine this and other important intellectual property issues. This legislation is too important for it to languish for another Congress.”

The PERFORM Act, or the “Platform Equality and Remedies for Rights Holders in Music Act,” is designed to provide equity and parity among the “new” platforms that provide “radio-like” services – cable, satellite, and Internet. Currently, different rates standards are paid by these different companies, different conditions are applied to their performances, and the content protections have been outdated by on-going technological advances.


Historically, a radio service simply allowed music to be performed and listened to by an audience. However, with the advent of new music services, the line between passive listening performances and reproduction and distribution has been blurred.

Recently, some services that offer digital transmissions have been exploring new technologies that would allow consumers to record, manipulate, and collect personalized music play-lists off their radio-like services instead of buying a CD or a downloaded song.

The Senators believe that these new forms of music delivery systems are beneficial for the consumer and should be promoted. They also believe, however, that as these new systems are developed, artists and songwriters must also be fairly compensated for their works.

The PERFORM Act would:

• Create Rate Parity – All cable, satellite, and internet companies – covered by the government license created in Section 114 of the Copyright Act – would be required to pay a “fair market value” for use of music libraries rather than having different rate standards applied based on what medium is being used to transmit the music.

• Establish Content Protection – All companies would be required to use reasonably available and economically reasonable technology to prevent music theft.

The bill also contains language to make sure that consumers' current recording habits are not inhibited. Therefore, any recording the consumer chooses to do manually will still be allowed. In addition, if the device allows the consumer to manipulate music by program, channel, or time period that would still be permitted under the statutory license.

For example, if a listener chooses to automatically record a news station every morning at 9:00; a jazz station every afternoon at 2:00; a blues station every Friday at 3:00; and a talk radio show every Saturday at 4:00; that would be allowable. In addition, that listener could then use their recording device to move these programs so that all programs of the same genre are back to back.

What a listener cannot do is set a recording device to find all the Frank Sinatra songs being played on the radio-service and only record those songs. By making these distinctions, this bill supports new business models and technologies without harming the songwriters and performers in the process.

However, the PERFORM Act would not:

• Apply to Over the Air Broadcasting – The only application to broadcasters would be if they were to act as webcasters and simulcast their programs over the Internet, in which case they would be treated the same as all other Internet radio providers.

• Inhibit Technological Advances – The bill would require cable, Internet and satellite providers to use reasonably available technology to protect the music, IF they want to enjoy the benefit of a government license. If, however, a company wants to use new technologies beyond the scope of a government license then they must go to the record companies directly to negotiate a licensing agreement through the market.

• Be Discriminatory – Under current law some businesses are required to pay higher licensing rates than others even though they provide essentially the same services. In addition, if a new satellite company were to be formed today they would be required to pay a higher rate than the current two companies in the market – that is not fair. Instead this bill would establish the same rates for all companies.

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Old 01-12-2007, 03:47 AM   #15
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Its all politics...Biden is intrested in the presidency.... proly just taking care of some campaign donors
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