Internet Radio Gets a Lifeline as Webcasting Bill Passes the House

By Michael Santo
Editor-in-Chief, RealTechNews

Since Congress mandated increased royalties last year for Internet radio “stations” webcasters like Pandora have been struggling to stay in business. On Friday, things reached a climax as the House of Representatives was nearing a vote on bill H.R. 7084, the Webcaster Settlement Act, which would allow Internet radio stations to negotiate with the music industry for a royalty rate lower than Congress’ mandated rates.

While it appeared things were moving forward, at the last minute the National Association of Broadcasters (NAB) began pressuring Congress to kill the bill. As such, Pandora sent out an emergency plea to its listeners:

Listeners we need your help… NOW!

After a yearlong negotiation, Pandora, artists and record companies are finally optimistic about reaching an agreement on royalties that would save Pandora and Internet radio. But just as we’ve gotten close, large traditional broadcast radio companies have launched a covert lobbying campaign to sabotage our progress.

Yesterday, Congressman Jay Inslee, and several co-sponsors, introduced legislation to give us the extra time we need but the National Association of Broadcasters (NAB), which represents radio broadcasters such as Clear Channel, has begun intensively pressuring lawmakers to kill the bill. We have just a day or two to keep this from collapsing.

This is a blatant attempt by large radio companies to suffocate the webcasting industry that is just beginning to offer an alternative to their monopoly of the airwaves.

Please call your Congressperson right now and ask them to support H.R. 7084, the Webcaster Settlement Act of 2008 - and to not capitulate to pressure from the NAB. Congress is currently working extended hours, so even calls this evening and over the weekend should get answered.

Yep, Congress is working extended hours, though on the Wall Street bailout. However, despite that, it seems the House had enough time to take action, and heard enough from supporters of Internet radio.

A Saturday night meeting with Rep. Howard Berman (D-CA) addressed some of the concerns of the NAB, and they agreed to drop their efforts to kill the bill, as well as not present any opposition to the bill when it hits the Senate.

With the NAB dropping its opposition, H.R. 7084 passed the House, and is now headed for the Senate. Pandora noted that the Senate vote may take place as early as Monday. Keep your fingers crossed.