More than 14,000 Internet radio silenced their airwaves on June 26th protesting against the new rules in the US increasing the royalties paid by Internet radio stations from a percentage of their revenue to a flat fee per song.
The increase is likely to put the majority of the Internet radio stations out of business and is criticized for damaging diversity and leaving only mainstream radio to thrive.
Other Internet pioneers are trying to break existing models and encourage free legal downloading and paid downloads of unsigned acts.
Goodstorm’s mixtape application ‘Capitalism done right’, enables unsigned bands to upload tracks and sell to fans via a widget on their social network profile (facebook, myspace, blogger etc). Fans can also share the love by posting a playlist on their own profiles that tracks can be purchased via.
In a collaboration between some senior technology players and Peter Gabriel, we7.com is an attempt to satisfy all musical interests. A 10 sec ad is grafted onto a track based on genre, demographic profile and suitability to advertising message; paid for by the advertiser, the track is free for the downloader yet the artist still gets paid their dues.
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