Would someone please tell me what's happening in the record business! Why, in the name of heaven, are they pushing away Internet radio stations. Do they really think that there's money to be made by charging a fee for every song played on the Web? I mean, come on, most of those 'stations' have never made a profit and those that have don't make enough to allow their operators to quit their day jobs.
Can anyone say the word 'greed'. There must have been dancing in the record company corporate offices when word came down last week that the Copyright Royalty Board had ruled in their favor and issued a pay for play rate schedule. You see, what these people don't seem to understand is that these 'station owners' are nothing more than enthusiasts. Most aren't doing it to build a communications empire. They love music and they love radio. Building an Internet radio station was probably the closest they would ever get to the business.
Many of these stations are run from a desktop computer in someone's home. The whole thing is put together in a software program like WinAmp. They were run on a shoe string...but now, because of the fees that they are going to have to pay, most will stop running altogether. And what I don't understand is why the record companies did this. You see, it was a free promotional outlet for their product. Kids who wouldn't listen to 'regular' radio were discovering songs on the Internet stations. Now, let's see...they give their products to terrestrial radio stations with the hope that they'll play it...but they want to charge the underfunded Internet stations for each time the songs are aired! Does that make sense to you because it sure doesn't make any to me.
They should have embraced this new marketing avenue. They should have encouraged the use of their music. Songs that might never have made it to a 'regular' stations play list might have had a shot on an Internet station. But it looks like that will never happen because in their infinite wisdom they decided that it was in their best interests to squeeze the little guy. If you ask me...they've got it bass ackwards.
Are there any more rational people out their? Doesn't anyone else see this? They think that they've just fixed a problem and what they've really done is shoot themselves in the foot. And what's worse is that they aimed and pulled the trigger!