PROs, DOJ, and internet streaming

September 7, 2014

This week I read an article about how the Department of Justice is getting involved in investigating how ASCAP and BMI are behaving and colluding with publishers in artificially driving up the rates for radio stations, namely pandora. This was interesting to me because I have been curious about instances where the owners of a station fight the PROs who seem relatively untouchable. This is something that seems to be coming from the age of internet and the PROs may find it more difficult to solidify the rates for those playing the music for a radio station based mostly on the internet. The article sites that this is from a failure for the PROs to catch up with the times of the internet, which may be true, but I believe there needs to be a whole new way that the performance royalties are collected for the internet. I agree with that, but at the same time with how the servers of these stations can save plays and how long a song, I find it easier, in theory, for the PROs to get accurate data on what song is played and can more appropriately distribute the money for these streaming services. There isn’t much coming from these stations and their revenue directly to the artist, songwriter, or really anyone so the only revenue might be coming from the PROs and they should be involved, but if they are hiking things up artificially, that would be unfortunate for how this will progress in the future.

 

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