x We are currently revising the RAIN publication schedule. Tomorrow will feature an early morning edition, as well as a very important second edition in the early afternoon. x

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... What the CRB denial really means Because we were all in the process of flying home from the RAIN Las Vegas Summit, we didn't have time to add a "RAIN Analysis" to yesterday's story (here) about the Copyright Royalty Judges rejecting everyone's requests for a rehearing. Our impression is that this may actually be good news for our efforts to get the CRB royalty rates set aside. Here's why: Many Congressmen were taking a "wait and see" attitude — i.e., "Let's give the process a chance to work." We have now done so. The next step in the process, an appeal to the U.S. Court of Appeals, would be a months-long endeavor. Since the royalty obligations come due on May 15th, most webcasters will be forced to shut down long before that appeals process could play out... unless Congress intervenes. -- KH ...

BY DANIEL MCSWAIN
Webcasters and listeners in the fight against the latest CRB ruling have a powerful new tool in their corner: SaveNetRadio.org.

SaveNetRadio.org is the centralized site for all webcasters, artists, listeners and supporters of Internet radio who want to take action to help fight the imminent silencing of the webcast industry.

The site focuses Webcasters on one unified message that they can then pass on to their audiences to help mobilize them in the fight against the CRB rates.

The idea is that that all PSAs, banner ads, and links point to SaveNetRadio.org for Congress and the public to hear a strong, coherent message from Webcasters on this issue.

For all media, the SaveNetRadio site should be the go-to destination that all coverage links and points back to.

The SaveNetRadio site is designed to help listeners effectively voice their opposition to the new CRB rates by linking them directly to their representatives in Congress.

The site makes searching for and contacting your local reps simple, and allows you to easily pass word of the effort on to friends and contacts.

[We have been advised that while every e-mail to a member of Congress helps, the most effective contact is via written letters and a phone call to the office of each rep.]

Below is a quick list of ways you can use the SaveNetRadio site:

• Sign a petition
• Download banners and PSAs
• Read and comment on blogs
• Read "myths & facts"
• "Pass The Mic" resource for artists
  

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... Numerous disparate parties have come together to help design the messaging for the SaveNetRadio.org website, including DiMA members, the Small Commercial Webcasters group, many public webcasters, musicians, and many independent labels. The messaging is very intentionally something that all affected groups should be able to support -- including broadcasters! Here at RAIN, we urge broadcasters -- and, ideally, the NAB! -- to step up and support this effort actively. Both PR-wise and long-term business strategy-wise, it's the right thing to do. -- KH ...

From the East Bay Express: "Bay Area leading light SomaFM faces crippling debt and insolvency along with many of its Internet radio peers including Pandora and Live365 this Spring. Late last March, the Copyright Royalty Board — three dudes in Washington — raised SomaFM's webcasting rates from $10,000 in 2005 to $600,000 for 2006 (applying retroactively).

"The ruling is 'fair,' says the top honcho of SoundExchange, the royalty collection group lobbying for higher rates on behalf of the major labels and artists.

"'Staggering,' is more like it, says SomaFM founder Rusty Hodge [at left]. 'We were expecting rates to go up 10, maybe 20%. It would be painful, but at least it wouldn't put us out of business.'..

"Zooming out for a moment... Recording labels suffered two major burns in the 20th century: (1) Labels failed to negotiate terrestrial, on-air radio royalties and radio became a billion-dollar industry with their music; (2) Labels failed to negotiate royalties for music videos on MTV, and another empire cashed in.

"Now, no one's building any more empires with their content... definitely not a bunch of pissant throwbacks to college radio.

"The majority of Americans who don't listen to netcasts should care about all this, because developments in that pond have ramifications for the on-air world, says Hodge. Terrestrial radio stations may soon face Internet radio's two sucky choices: (1) Pay SoundExchange through the nose for whatever the station wants to play, or (2) Save money by making direct, legal deals with record labels to play a label's free 'Abomination of the Week.' I'm looking directly at you, 'Korn Unplugged.'

"It's the opposite of payola but with all the effects, says Hodge. It's Dark Payola.

"'They're going after the over-the-air broadcasters next,' he says. 'There's no doubt. And if you think media consolidation is bad now, wait till it's back to the old payola days.'.."

This entire article, from the East Bay Express, is online here.

From an Associated Press article in the San Jose Mercury News: "Google Inc. and Clear Channel Communications Inc. announced a long-term agreement that will allow the Internet search leader to place advertising for its online customers on more than 675 Clear Channel radio stations.

"'This radio partnership with Clear Channel is a pretty big statement that Google is in the radio industry to stay and have a big impact,' said Drew Hilles, Google Audio's national sales director.

"The agreement will... allow those customers to target their campaigns, reaching particular audiences in targeted locations at specific times, and to get quick feedback about their campaigns, he said...

"Financial terms of the deal were not disclosed.

"The move represents Google's latest effort to take its online advertising clout to other media...

"In December, Google started testing a radio advertising service meant to reach hundreds of radio stations nationwide. The company is slowly adding advertisers to the service, though Google didn't make clear how many advertisers are involved so far, nor did it set a timetable for opening the service to all.

"With Clear Channel, the nation's largest radio station owner, on board, Google's advertisers will be able to access about 1,600 stations though the Audio Ads service, company representatives said."

Read this entire AP article online here.