Earlier in my blog I had talked about two different radio platforms that are emerging into the internet world. ITunes Radio and Pandora, both similar, but both facing different issues. Pandora has been ruffling through legal troubles for a while battling ASCAP over how high the royalty rates should be placed on sites like Pandora, and ITunes Radio is planning on rolling out an entirely new generation of radio to the listeners of its platform. Just today, Judge Denise Cote issued, in favor of ASCAP, a royalty decree to have Pandora pay 1.7 percent higher than terrestrial radio is required to pay. In the same article posted by the electronista website I also observed that ITunes radio is being required to pay ten percent more than terrestrial radio. Although Pandora feels this is far, and have no complaints, and I am not fond of Apple joining the radio community, I completely disagree with these platforms having to pay more than terrestrial radio.
The suits are at it again, now they are more empowered than ever, having won their cases against Pandora. These royalty fees should not be in question. When problems like these occur they infuriate me, all I see is a giant corporation mad because they are losing a tad amount of money they are already gaining, to something they obviously see as a threat. I love and support terrestrial radio, but the third party licensing firm ASCAP does not run any terrestrial station, nor should they represent what terrestrial radio is. ASCAP simply allows for artists to be publicly broadcasted so that they collect a fee from the terrestrial radio providers. Yes, internet radio is growing at a substantial rate, but Gary Lycan wrote just last year about the decline of terrestrial radio, in which Gary Bryan of K-Earth 101 exclaimed that large majority of people still tune into the radio. With that many people listening, terrestrial radio has to gain its capitol form more advertising and commercials, sponsoring sports events or even selling merchandise. Not to get off topic, but they have to do this, and because of this people are more aware of them. Internet radio is still slightly underground and trying to grow, but just because a little competition arises the growing company has to pay more. People like Robert Feder would say that terrestrial radio is flooded with ads, and this has deterred listeners from encompassing the world of terrestrial radio. I will say there are a lot of ads, but there has to be. The radio platforms are simply passing along information, and small fragments of content, there has to be a way for money to be earned, and terrestrial radio has found its way. If you love not having that many ads featured on Pandora and other internet radio platforms then you can understand how this new law angers me. Since internet radio stations are now required by law to pay more than terrestrial stations, you can expect ads upon ads in the near future.