Radio: Really strange bedfellows

This is not meant to be an insult and I don’t believe it will be taken as one.

I applaud the efforts of the Voice of Webcasters (VoW) and, if nothing else, its “Day of Silence” was successful in drawing more attention to Internet radio.

It has also kept the RIAA from forcing their royalty payments schemes on more streaming audio stations.

The problem remains that Internet radio is hampered by having too many foster parents.

It becomes a victim of its own independency.

The result is one medium being spoken for by many mouths.

When everyone’s in charge, no one’s in charge.

It also leads to defectors – like the streaming audio sites that have already cut royalty deals with the RIAA’s SoundExchange division. Those amount to a fully-legal “pay-for-play” system that only major labels and acts can afford.

They call it “direct licensing.” Those that know better call it “dark payola.” Read about it here.

This is why both the terrestrial radio industry and Internet radio should combine forces to answer the RIAA’s attack on streaming media and royalty payments.

You don’t have to get along. Just agree.

And what you must agree on is that the RIAA should not be given one cent in royalty fees – period.

Don’t push for the opposite – threatening to charge the labels to play their music. They’ll call you on that one – and win.

What has worked up to this point for terrestrial radio will work for streaming audio.

Airplay exposes music – regardless of medium.

Mitch Bainwol, the CEO of the RIAA, runs with a shady pack.

He lobbies for and answers to the four major multinational label groups – two of which are foreign owned. He answers to the labels’ bosses, under-bosses, and their consigliore.

Another RIAA subsidiary is the MusicFirst Coalition. They’re out to extort a tariff for streaming music to terrestrial radio.

I’ve spoken with some terrestrial radio people that swear to “inside information” that when the RIAA forces end up in control of Internet radio, they’ll back off terrestrial.

The Easter Rabbit died for your sins, too.

MusicFirst really burns me – and some of the artists they’ve trotted out as mouthpieces should know better.

I’ve heard former Supremes singer Mary Wilson complain that she hasn’t received money owed her from the many million-sellers her group performed.

She has a legitimate complaint. But it’s not radio’s fault.

She should take that one up with her former Motown boss Berry Gordy, Jr.

Of course, Ms. Wilson may have to follow a paper trail – if there is one. Who owns the rights to Motown’s master recordings today? It’s not like the Supremes stopped selling. Just watch one of those half-hour p.i. spots on TV and cable for greatest hits and soul collections. Someone’s making money.

Stations keep running and running and running those p.i.’s because they produce revenue and those carrying them get a taste of every unit sold and those generating the most units get the highest rotation.

Mary, when was the last time you got a check from whatever company’s leasing your masters for those compilation CDs?

Here’s the problem. We need unity. We’re talking strange – really strange bedfellows here. But it’s the only way to defeat the RIAA machine.

If only David “Fumbles” Rehr could concentrate on more than trying to stop XM and Sirius from merging and blindly propping Peter “Sgt. Bilk-o” Ferrara and iBiquity’s HD Radio scam.

He needs to focus on winning the war with the RIAA.

Never underestimate the value of a hot concert ticket. Just ask the RIAA what they do when they need to grease a few palms to see someone who’s impossible to see in Washington.

Arbitron and Edison Media's Infinite Dial Report will be out in a few weeks. What we know so far from its advance hype is that there’s an estimated 33 million U.S. citizens – 12+ total audience – listening to streaming audio at least once per week. That’s up from 29 million listeners a year ago.

Fumbles, hitch your wagon to the one heading in the right direction.

Here’s the scary part and why we need these strange bedfellows. Think of Fumbles and Bainwol in a cage match. Who do you think would come out alive?

Social networks are the future. Terrestrial radio chains should’ve been buying them up instead of blowing money on HD Radio. Sixty three percent of streaming audio users have a profile on a social network site – predominantly MySpace and Facebook. Are we getting through, Fumbles? *

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Appeals, schlameils…the NAB has to agree with and partner with VoW. And they should follow their lead. The Internet radio people have the terrain down.

I know the other side of the story. I’ve talked with station owners that view independent (meaning not connected to a terrestrial radio station license) streamers as competition – even the enemy.

That is not the case.

As Tacitus, the Roman historian said, “In valor there is hope.”

Picture an intersection with four vacant corners. A restaurant moves into one vacancy. For that restaurant to be successful its owner will need one on every corner to drive more traffic to that destination. The same applies to streaming. Safety in numbers.

Internet radio – like terrestrial radio – exposes and sells music. And it should be allowed to program music based on merit – not the pre-paid shenanigans the RIAA is trying to pimp.

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What are the odds of such a bizarre coalition ever occurring?

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Zero.

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That’s reality. Independent Internet radio will have to continue the fight on its own against the RIAA’s multi-million dollar label funding and political clout on Capitol Hill.

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For Internet radio, so far, so good – but that isn’t good enough.

Too many Internet radio stations have already gone dark – for absolutely no reason other than the RIAA’s greed.

This time - resist some of the greed. It’ll pay off for years to come.