Correction:

The Internet Radio Equality Act (IREA), which has been introduced in both Houses to roll back the CRB decision does NOT create a performance royalty for terrestrial radio, as Mr. Robertson states. It simply brings Internet radio rates into line with rates paid by satellite broadcasters. The fight over the terrestrial performance royalties is completely different, which is why the National Association of Broadcasters can be in favor of IREA and vehemently opposed to seeing the royalty expanded to terrestrial radio.

Comment:

Mr. Robertson’s vision of the future of webcasting glosses over one important factor. Directly negotiated licenses between webcasters and copyright holders may permit those webcasters to pay royalties at a rate lower than the one demanded by the CRB, but such licenses are also outside the provisions that guarantee a 50/50 split of the revenue for artists, and direct payment of that share. Granted, those smaller independent labels that sign the deals Mr. Robertson predicts are likely to be more “artist-friendly” than the major labels. (Frankly, it’s hard to imagine anyone being LESS artist-friendly than the majors when it comes to paying royalties). Even so, leaving artists to depend on the kindness of their labels, large and small, has never been a profitable venture for most of those artists.

Find a way to make sure the artists get their share of the royalties in that brave new world, and there might be some chance things turn out the way Mr. Robinson sees it happening.