Internet Radio Will Kill the Government Star
by Gil Rosen

In my humble opinion headlines such as ‘The death of web radio?” or “The last days of internet radio?” are nothing but the opposite of what will turn out to be the actual result. If I had to give a 10 year outlook, my guess is that the government agency behind this current farce (CRB) has more to fear about its long term existence than web radio does. And that is (probably) the very reason it has chosen the weakest rival possible to try to prove there is a reason tax payer money funds their activity.

This was their last mistake. The nail that will seal their coffin. Ten years from now when the whole DRM / Copy Rights / Royalties issues will be solved using a completely private, voluntary and extremely efficient systems - historians will view this current battle as being the one that lead to the turn around in public awareness. Talk about choosing your battles right….not!

If they raised the royalties by so much as a penny, they would have made much more. If they could actually develop a business model that makes sense that would have even contributed something. But greed and power have caused greater empires and ceasars to fall and this will be no exception.

The public has awakened, the battle may seem lost, but its far from it. No government agency or corporate bureaucrat can stop a swell of change like the internet is creating. Not in radio, not in TV broadcast or elsewhere.

What is the end game for this? Kill the Internet radio? In an early stage industry there is so much more money on the supply side. Do us a favor, get your act together and create the opportunity. Wanna talk about making money? Get music actually heard, then tax the royalties from referrals to Amazon and iTunes. That makes so much commercial sense. This is synergy. This is convergence.

If you stick to this greedy pricing structure then you would ultimately:

1. Collect less taxes

2. Drive media outside the territory / industry

3. Get everyone to focus beating the system rather then on working with it

4. Lower incentive to develop technology, services and probably future royalty eco-systems.

Government wrath has never done any good other then get more conscripts in a time of war. Even then if it fights the right/just wars people will volunteer.

In 1610 the establishment didn’t like the fact Galileo published an account of his telescopic observations of the moons of Jupiter, using this observation to argue in favor of the sun-centered Copernican theory of the universe against the dominant earth-centered Ptolemaic and Aristotelian theories.

In 1614, from the pulpit of Santa Maria Novella, Father Tommaso Caccini denounced Galileo’s opinions on the motion of the Earth, judging them dangerous and close to heresy. Ultimately landing Galileo under house arrest.

In todays terms exhadurated royalty increases are the equivalent of putting internet radio under house arrest. Its not day light execution but the target is supposed to fade away.

I got a news flash for the bureaucrats - Father Tommaso Caccini won the battle but lost the war - you will too!

To learn more and and voice your opinion go to www.savenetradio.org

if you are still not convinced, read Tim’s plea (Pandora’s founder)

Gil Rosen
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