p2pnet.net news:- On June 26, net radio broadcasters across America launched a day of silence to protest increases in royalty rates.
“In the shadow of the Capitol, SaveNetRadio artists welcome Congressman Jay Inslee and Congressman Don Manzullo to speak to the crowd,” says the caption to the picture on the right, featured on the SaveNetRadio site, going on: “The Congressmen have introduced legislation in the House of Representatives that would save Internet Radio.”
Entertainment lawyer Fred Wilhelms is among the most vocal opponents of the increases, and he’s been uncovering the inconsistencies and outright lies emanating from the corporate music industry and its adherents >>>>>
Today’s lesson in imaginary arithmetic comes from Richard Ades, the latest in an apparently endless series of paid SoundExchange spokespeople (and you wondered why they need that $1 billion in administrative fees!)
In response to the Internet Radio Day of Silence, Ades was quoted by Technology Daily as saying “The bill on the Hill would not only vacate CRB decision but would cut rates by 75 percent from what the old rate was. That’s their idea to fairness to artists? That’s an insult,”
What is truly an insult is that SoundExchange’s mouthpieces continue to make up numbers as they go along and expect everyone not to check their work.
Let’s examine Mr Ade’s grasp of simple math.
The percentage-of-revenue royalty rate called for in H.R. 2060 is 7.5%.
If Mr Ades was right about that being a 75% cut from the old rate, the old rate would have to be . . .?
Anyone? Anyone? Bueller?
The answer is 30% 7.5% is one quarter of 30%. A seventy-five percent reduction from a 30% rate gives you a 7.5% rate. That was easy.
Except the old rate wasn’t 30%. It was 10.9%.
Mr Ades was only off by a mere 275%. I guess he should get credit for not repeating John Simson’s earlier howlers about Internet Radio having $500 million in advertising revenue, which missed reality by 1000%, Mr Ades was nearly four times closer, which almost puts him in the same time zone as the truth this time. That’s an encouraging sign, but I’m sure SoundExchange will do what it can to get the “margin of error” back to their usual higher comfort level as soon as possible.
Sarcasm aside, isn’t it past time for SoundExchange to stop making up numbers and actually respond to the questions being asked?
Isn’t it time they stop putting guys like Ades out in public to invent numbers and actually explain why they think they need $1 billion in administrative fees?
Making up numbers always worked for the RIAA, but they just worked for the major record labels, so no one really expected them to be honest.
SounExchange’s John Simson, Ades and company keep talking about the poor artists they represent. Isn’t it time to be honest with them and tell them that when the Internet stations those artists rely on disappear, so will their royalties, no matter how high the royalty rate is for the surviving stations?
SoundExchange’s disdain for the truth equals it’s disdain for public opinion, and both of those reflect the real disdain it demonstrates to the artists it supposedly champions. Hasn’t everyone had enough of that?
Or at least 75% of enough?
Fred Wilhelms – p2pnet
[Wilhelms is an entertainment attorney based in Nashville, Tennessee. You can contact him at fred.wilhelms @ gmail.com.]
day of silence – Net radio’s day of silence, June 25, 2007
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Tired of being treated like a criminal? They depend on you, not the other way around. Don’t buy their ‘product’. Do bug your local politicians. Use emails, snail-mail, phone calls, faxes, IM, stop them in the street, blog. And if you’re into organizing, organize petitions, organize demonstrations and then turn up on your local political rep’s doorstep, making sure you’ve contacted your local tv/radio station/newspaper in advance. Don’t just complain. Do something!