Here's more on Representative Rick Boucher's speech at the Jupiter Media Metrix Plug In digital music conference earlier today:

Will Web Music Ever Play

"Boucher, a Democrat from Virginia who has been a U.S. House of Representatives point man on digital media and Internet commerce issues, termed the CARP decision 'inappropriate in the extreme' and called for an overhaul of the entire CARP process, which he deemed 'truly broken.' The proposed royalty rates were unfairly set by a panel lacking the expertise and reliable data needed for a reasonable decision, he said, and will have a devastating effect on fledgling Webcasters.

Boucher said he is teaming with Representative Jay Inslee, a Washington Democrat, to introduce this week legislation to defer any requirement that small Webcasters make royalty payments. Boucher offered no further details of his plan, but said he hopes it will delay any payments owed until a new fee structure is in place. More-flexible payment plans, such as sliding fees based on a Webcaster's gross revenues, will better spur the industry's development, he said." [PC World]

Here's where your blood will start to boil (emphasis is mine):

"In a later keynote, Hilary Rosen, Recording Industry Association of America chief executive officer, said she's doubtful Boucher's bill-to-be will pass. The RIAA has already expressed its approval of the CARP's initial decision and its dismay over the subsequent reduction of the proposed royalty rate for music Webcasts, saying the lower rates don't reflect music's fair market value. In response to an audience question about the consequences of steep fees on small broadcasters, Rosen suggested that broadcasters without the resources to pay the proposed fees shouldn't be in the market.

'This is not about mom-and-pop [businesses] versus big corporations. This is a business-model issue,' she said. 'This is something that should be anticipated when you build a business.' "

Hilary Rosen sure is confident in her organization's lobbying efforts. And why shouldn't she be? Their political contributions have certainly been paying off so far.

But let's take a step back for a moment and recognize that what Ms. Rosen is arguing for is capitalism. If you can't stand the heat, get out of the kitchen. So if you're a small webcaster and you can't afford the fees - too bad. You can't be part of the business model if you can't make it work.

However, I doubt Ms. Rosen sees the irony in applying this sentiment to her own industry's current situation. Let's go ahead and talk business model for a minute. Let's say you introduce a new format (like say, CDs) and you promise customers won't regret changing formats (again) because prices will decrease over time and the sound is so much better. And sure enough, your production costs go down, but you raise prices anyway (including price-fixing when the retail price does finally start to drop). Then you consolidate until only a handful of companies are releasing content that it turns out people don't really want (at least, not in the kind of numbers you need in order to sustain your business model).

So people stop buying your product in bulk. On top of that, the economy tanks, you're trying to sell albums to a market you've groomed for singles, and you refuse to offer a different business model that your customers have clearly indicated they prefer (portable digital files).

Hmmmm... sounds like "a business-model issue" that "should be anticipated when you build a business," now doesn't it? Perhaps the RIAA and its members "shouldn't be on the market" then, eh? Maybe they should busy themselves anticipating a new business model, rather than alienating the customers they so desperately need in order to stay in the game.

Oh, and add another name to the list of clued-in Congressional Representatives - Jay Inslee (1st District in Washington). Show him the love!

And when you contact your local legislators, don't forget to mention how the demise of fair use will prevent public libraries from circulating digital files. Ask them if they want to vote for a future without libraries.

Rep. Boucher Outlines 'Fair Use' Fight

"U.S. Congressman Rick Boucher, moving to strengthen 'fair use' provisions under federal copyright law, said he is introducing a bill that would essentially restrict the record industry from selling copy-protected CDs....

During a keynote address to the seventh annual Plug.IN digital music conference sponsored by Internet research firm Jupiter Media Metrix, the Virginia Democrat urged the record industry to reconsider introducing the copy-protected CDs....

...He also wants to ease up some of the more copy-restrictive provisions of the 1998 Digital Milennium Copyright Act, whose pay-per-use provisions on copies he has criticized as a threat not only to 'fair use,' but to innovation, idea exchange, even First Amendment guarantees on free speech.

Originally introduced in August of 2001 as the Music Online Competition Act, the bill aims to make seven changes to copyright law that Boucher, who also sits on the House Commerce and Judiciary committees, said help advance the legal distribution of music online....

'The music industry needs to take off the brakes,' on copy-prohibiting tecnnologies, Boucher said. 'The vast majority of the Internet consuming public is honest' and would be willing to pay for online music, especially if 'the music industry would agree to put its entire inventory online.'

Boucher also said he is introducing legislation within a week that would update what he called outdated ratemaking rules regarding CARP, the royalty dispute body. 'We need to scrap the CARP and adopt a new standard,' Boucher said, adding that one proposal is to confer to federal district judges some of CARP's ratemaking jurisdiction." [atnewyork.com, via Slashdot]

Somebody pinch me - I must be dreaming. Common sense being interjected into this debate by a Congressman? Is the sky still blue? Go Boucher Go!

If Boucher is your rep (9th District in Virginia) and you support this legislation, be vocal about it. Let him know what a nice change it is to have someone introduce a bill that supports the public's rights, not the entertainment industry's.

If you live elsewhere, let your Representative know how you feel about fair use rights and webcasting. NOW is the time to make your voice heard. Visit SaveInternetRadio.org if you need help or advice with this.

Is Satellite Radio Ready to Take Its Act on the Road?

"What can be worse than driving the same miserable, traffic-clogged, accident-scrambled commute every working day? How about listening to the same miserable, playlist-choked, advertising-strangled radio broadcast every working day?...

In the case of TV, millions of Americans have opened up their wallets to pay for premium cable and satellite service, and nobody thinks that strange.

Two digital satellite services are betting that the same equation will apply to radio.

One, District-based XM Satellite Radio, announced on Monday that it has signed up more than 136,000 subscribers since its start last fall. The second company, Sirius Satellite Radio of New York, announced its nationwide launch Monday.

I tested XM's service last November and found a lot to like. For $9.99 a month, you get access to 69 music channels and 31 news, sports and talk channels with far more diversity than FM can dream of. The downsides were the cost and a few dropped signals around the Washington area.

Sirius differs from XM in several key aspects. It costs more, $12.95 a month, but promises no ads on any of its 60 music channels. It also uses a different system of satellites and land-based repeater antennas -- so you can't get both Sirius and XM using one radio. (Sirius receivers do include FM and AM tuners, which you'll need for traffic reports and other local info.)

Audi, BMW, Chrysler, Dodge, Ford, Jeep, Lincoln, Mazda, Mercury, Nissan and others have announced plans to offer Sirius equipment in their vehicles. Otherwise, hardware starts at $320 for an in-dash receiver and $80 for an antenna; home and portable receivers will be available later....

...what really reminded me that I was using a satellite-based system was the maddeningly uncertain reception. The Sirius signal came through fine in most places, including such commuter routes as New York Avenue, Interstate 295 and 16th Street NW (even in the Interstate 395 tunnel downtown). But it dropped out in too many other spots for no apparent reason....

Sirius says it's still fine-tuning its service to address these problems. Until it fixes these gaps, I can't recommend the service....

Sirius could soundly beat XM on one aspect -- pricing structure. But it repeats XM's mistake of requiring one subscription per receiver. Neither company offers a family-plan discount, nor can you share service among multiple receivers by swapping out access cards, as satellite-TV providers DirecTV and Dish Network allow.

This seems a strange oversight. Why not cut a break for customers who like the service enough to want to listen to it outside of their cars?" [The Washington Post]

I didn't realize that Sirius lets you listen to their stations over the web - a nice service to be sure. I'm listening to the Sirius Kids station as I write this since this type of entertainment would be a welcome addition to road trips with the kids. So far, so good. It turns out XM Radio lets you listen to samples of their channels so you can do some comparisons and they have a kids channel, too.

I've come close to buying the portable Sony XM receiver, but I don't feel confident enough yet in either the XM or Sirius service. I might actually consider going with Sirius if a portable receiver was available now, but one doesn't exist yet. The major reason I haven't purchased the Sony receiver for XM is that it doesn't display the song information, a glaring omission in my book. I think I'd have better luck with coverage in the Chicagoland area, but price points are still too high right now for an untested service. These companies would have better luck charging $19.95 a month and including the hardware as part of the subscription.

Side bar: there are some interesting channels at both sites that you can listen to as your favorite webcasters go off the "air."

Addendum: it didn't take long (maybe 15 minutes) for both kids stations to play Under the Sea from The Little Mermaid. Hmmm....

Addendum redux: The SF Gate has a more positive review of Sirius, although I'm still hesitant to dive in because of the high price of the hardware. I've been listening to the XM Kids station all morning, and I quite like it, especially as an alternative to FM radio. Now on to try the Sirius Kids channel.

Labels to Net Radio: Die Now

"You’d think the record companies would love Internet tunes—instead they’re trying to kill them....

The apparent irony is that Webcasting seems like something that the record labels would want to nurture, not smother in the cradle. There’s no Napster problem: Web radio uses streaming technology—real-time transmissions that can’t easily be downloaded and stored. Just like real radio, it’s free exposure for artists, especially ones that have difficulty getting air time in the cookie-cutter world of FM radio. And Webcast listeners find it easy to buy what they like: musical cuts are clearly identified, and often there are direct links to allow an instant CD purchase....

So why are the record labels taking such a hard line? My guess is that it’s all about protecting their Internet-challenged business model. Their profit comes from blockbuster artists. If the industry moved to a more varied ecology, independent labels and artists would thrive—to the detriment of the labels, which would have trouble rustling up the rubes to root for the next Britney. The smoking gun comes from testimony of an RIAA-backed economist who told the government fee panel that a dramatic shakeout in Webcasting is 'inevitable and desirable because it will bring about market consolidation.'

The record industry, with the help of Congress and the Copyright Office, may indeed make a shakeout inevitable. But I doubt that Jim Atkinson and his fellow independent Webcasters find the prospect of their extinction terribly desirable. Nor do the 77 million Americans who have at one time tuned in to Web radio and perhaps found something not featured on the lobotomized playlists of broadcast radio. If enough of those outraged listeners stream their objections to legislators, maybe Internet radio can be saved." [MSNBC]

SaveInternetRadio.org - there's still some time to reach legislators and make your voice heard because the case is on appeal. There's nothing really new in this article if you've been following the issue, but it provides a good overview and it illustrates the level of illogic the music industry is willing to go to in order to maintain the status quo for as long as possible.

Remember that TV show Dinosaurs where all of the characters are named after oil companies? I think we need a new version in which the characters are named Eisner, Rosen, etc. Ha! Imagine a show like that getting on the air these days. Like that could happen....