Internet Radio in Danger in the US.

[ image courtesy of yomanimus / Flickr ]

There has been much discussion surrounding the fallout of the Copyright Royalty Board's [CRB] recent decision to increase the royalty amount that US internet radio stations will have to pay. It is a graduated plan, set to double in five years, and includes all stations commercial and non-commercial, whether they are creating a new content stream or simulcasting a terrestrial signal.

NPR and the CPB have come out guns a-blazing, lawyers in tow, to get the decision overturned. Representatives from soundexchange.com [the company that does the lobbying for the CRB] have been quoted in a rather unfavorable light. This quote courtesy of internetnews.com's article on the matter:

We're all fans of Internet radio. We don't want to see Internet radio go away. These are negotiations. We're not trying to stick it to anybody. In terms of what happens next? Either side could appeal to the U.S. District court...

I gotta say that the handling of the price "negotiations" via the US Judicial System is sending a message of sorts to involved parties.

This all seems myopic on the part of the CRB. If this arrangement stays in place, it will have a cooling effect, if not a total deep freeze, on the internet radio world. Many webcasters have already come forward to say that they will not be able to sustain operations with the full weight of the increases on their backs.

If the webcasters in the US are reduced or driven out of business, I think we could full well expect international webcasters to fill in the gaps. We have been talking about internet radio being the future, but this decision looks to put a serious damper on the efforts here in the US.

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Many are fond of it

Right now, in Las Vegas, a big event is going down. It is the 2007 Consumer Electronics Show, and it started today.

There are many dazzling devices there for sure, but one is of particular note. It is the InFusion portable Internet radio. The show's organizers, the Consumer Electronics Association (CEA®) thinks quite highly of it. They bestowed this upon the manufacturer, Torian Wireless Limited: the International CES Innovations 2007 Design and Engineering Awards Honoree status.

Consumers should take note, as this would be interesting alternative for folks tired of thier iPods, but also tired of the local radio dial. All you need to do is bring this to a WiFi HotSpot and you have access to thousands and thousands of Internet radio "stations" [the term is becoming more and more obsolete] from all across the globe. No computer needed. Just this little device, about the same size of a standard iPod.

Broadcasters should take note as well, for all of the obvious reasons. You either have new competition or a new outlet, depending on where your strategic plans stand.

This comes on the heels of a story from the BBC indicating that the "early adopters" curve is tightening. Folks are adapting more quickly than ever before.
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