toby10 wrote:
>  RIAA has deep pockets, Internet Radio stations (and
> those lobbying on their behalf, I presume) barely have enough $$$ to
> pay their bills.

Correct.


> What I think I understand:  RIAA charges nothing to OTA AM/FM
> broadcasters, very little to XM/Sirius (based on revenues & number of
> listeners/subscribers), but wants to charge Internet Radio stations a
> much higher fee rate than other broadcasting types?  WHY?

The OTA radio stations are grandfathered in. Commercial radio stations
are required to pay a "mechanical" fee for each song. Its fairly
expensive, about 5 cents per song. Its OK for the commercial radio
stations because the station's economics are built on advertisements.

The scale works for the OTA stations, you can play a song once, and have
hundreds of thousands of listeners for both the song and the ads. A
station may play 12 to 15 songs per hour, so its paying under $2 per
hour in fees.

Some of the streamers would stream hundreds of thousands of songs, each
costing a fee.

> What I don't understand:  RIAA claims they are doing this to "protect
> the artist" which I can understand *if* that were the case.  Where are
> the artists on this subject? 

Saying "protect the artist" spins a lot better on The Hill than the real
words: Protect the greedy lawyers who are the record labels.

>   It seems
> the established artists, for the most part, are rather silent on the
> issue.  I'd guess they either side with the RIAA or are afraid to say
> anything to upset the RIAA.

Established artists are under contract to the major labels.

-- 
Pat Farrell
http://www.pfarrell.com/

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