Since the big players have the money, that seems to be the only reason they were allowed in the determination. It was said at the time that it would kill internet radio for the small players. With backdated royalty rates whom no one else has ever had to do, it is a shady deal just on that reason alone. Not to mention the increase that was planned. Raising rates above and beyond what terrestrial broadcasting radio sites have to pay on a commercial basis is just beyond my understanding unless it has one objective. If that objective is to shut down any competition then it achieves its goals.

Lack of competition is never good for anyone except for the established players. It comes to mind that a few years ago brings a good example of this lack of competition and what can result. ClearChannel is a big player in the broadcast radio business. Having purchased a station in a city, it then set up its off site handling of programming and broadcasting. When a civil emergency required the notification of the local citizens; well guess what? No one could be found on the station premises to ask for the public announcement to be spread to their listener base. They had no one there but the night watch man, everything else being done remotely from far away. Now one of the requirements of broadcasting for obtaining license from the FCC is the requirement to give a certain amount of time to public service announcements free of charge as a condition to have that license. It is one of those requirements that the broadcast industry has been turning a blind eye towards as air time is money. Definitely, a civil emergency qualifies as a public service.

The restriction to the big boys has brought the public other unwanted aspects such as payolla. Its why you don’t hear new music and instead you hear the same tunes replayed hour after hour with only a few new songs per month aired. Those new songs are liable to be older hits being recirculated yet again. No where in there do you hear the fresh new music, the indie, or new styles just coming out.

SoundExchange had set this up to follow the close out just like in broadcast radio. The internet radio is a threat to them, allowing the indy to get exposure. Heck anyone with some bandwidth and a few programs can set up their own on-line radio station and play whatever their heart desires. That is certainly competition, even if they aren’t playing the cartels’ products. No wonder they were happy with the setup and the raise coming.

It was all dirty politics and it would remain that way without the changes we’ve seen recently in Washington, little though they be.