Pay to play spins over Web radio

Published 5:00 pm Tuesday, July 1, 2008

SUNSET BEACH – Songs like “Respect” by Aretha Franklin are rare on radio these days – unless you’re tuning into an Internet radio station.

Last May, the Copyright Royalty Board (CRB), the governing body that determines fees for Internet and satellite radio, passed a rate increase of between 300 and 1,200 percent depending upon a radio station’s format and its current income. To date, that rate increase has never come to pass thanks to the intervention of Rep. Jay Inslee, D-Wash., and Rep. Donald Manzullo, R-Ill., who co-sponsored the Internet Radio Equality Act (HR 2060). The act has since gained support from 150 members of Congress but has yet to have its day on Capitol Hill.

In the intervening time, net broadcasters like Peter Kraushaar, who broadcasts in Sunset Beach on KBFD 104.9 FM with a 0.25-watt reach and also on the Web through www.sunsetbeachoregon.com and (www.pacificradio.org), is trying to shift gears to music providers that will keep the rate increase from affecting his playlists.

Kraushaar began working as a disc jockey as a senior in high school, hosting a program called “Youth Wants to Know.” The show regularly hosted local government officials in his home state of Arizona.

“I kind of fell in love with radio as early as the 1960s,” said Kraushaar, recalling what were referred to as “Border Blaster” stations. The stations operated across the border in Mexico, where there was no regulation of watt usage, and would reach as far north as Nevada in some cases.

For Kraushaar, who sticks largely to a playlist of independent artists in genres including Americana, folk, roots rock, jazz and blues, the passage of a royalties rate increase would keep him from being able to play songs from Fleetwood Mac, The Who, The Beatles and other classic bands that are guaranteed a royalty for the use of their songs on the radio.

Along with the HR 2060, a bill co-sponsored by Oregon Sen. Ron Wyden and Sen. Sam Brownback, R-Kan., – SB 1353 – is still alive as well and is a companion bill to HR 2060. Both pieces of legislation would nullify the decision made by the CRB and establish a royalty rate scale that would create special rules for the Web-based affiliates of National Public Radio and college radio stations.

Despite the postponement of the decisions on the proposed legislation, Kraushaar is preparing for a time when he will not be able to play songs by musicians on major recording labels.

“They want to charge net broadcasters a heck of a lot more than other broadcasters,” said Kraushaar. “I will go to almost complete indie (if the rate increase is approved). I’m trying to bring something that is not available on the North Coast.”

To keep his station up and running, even if legislation takes away his ability to legally broadcast big name bands, Kraushaar has purchased a subscription to Live365.com, which uses its subscriber fees to pay for royalties fees. He said he would be sad to see Internet radio become so restricted.

“I think Internet radio is the last frontier for mom and pop stations,” said Kraushaar.

As Kraushaar talks about his passion for radio, The Killers fitting refrain of “I’ve got soul, but I’m not a soldier” plays in the background, further highlighting Kraushaar’s love for radio that exposes listeners to something they might never have heard otherwise.

So, as Kraushaar and other Internet broadcasters await the decision on a rate increase, the music plays on.

“I will keep broadcasting, even if I have to lose The Beatles and The Who,” said Kraushaar.

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