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Radio News (more headlines) 12-02-2012

Internet Radio Fairness Act Is Common-Sense, Long Overdue

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The following statement is attributable to Michael Petricone, senior vice president of government and regulatory affairs, Consumer Electronics Association (CEA), following the hearing on the Internet Radio Fairness Act:

"Current law requires Internet radio companies to pay vastly more in royalties than other digital or over-the-air music sources. By imposing disproportionately high costs on Internet radio companies, the government is effectively picking winners and losers in the digital music marketplace.

Unsurprisingly, the Internet streaming ecosystem is not healthy. Unjustifiably high royalty rates discourage new competitors and many Internet streaming companies have closed or left the industry.

By rationalizing the royalty structure, the Internet Radio Fairness Act will stimulate investment in the internet music industry. That means more royalties for artists, more choices for consumers, and more exciting new products and services for Internet music.

The current royalty system is unjustifiable, and changes proposed in the bill are common sense and long overdue. We urge Congress to vote for innovation and pass the Internet Radio Freedom Act as quickly as possible."

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