Today, many of you will turn on your Internet radio only to find silence, and realize just how important it really is to save it. I know for me, Internet radio opened me up to a whole new world of music genres and artists that have shaped my sense of style, identity, and worldview.  If it wasn't for internet radio, I'd still be stuck searching the radio dial only to find the same handful of artists spitting often times stereotype-filled lyrics over recycled beats over and over again. I've depended on internet-only webcasters like Pandora and Live365 to bring me the latest music from around the world, and around the corner. I also rely on broadcasters that simulcast online, like Santa Monica-based KCRW to have a streaming version of the latest 'Morning Becomes Eclectic' session I so dearly miss, since recently moving to the Bay Area.

Amidst broadcast radio's monotony and lack of diversity Internet radio provides listeners like me with niche and special programming. At some point every day more than 7 million Americans are listening to Internet radio.  Studies by Arbitron and Bridge Ratings conclude that between 50 and 70 million Americans listen to Internet radio every month, and about 20 percent of 18-34 year olds listen to Internet radio every week.

Thousands of Internet-only webcasters and broadcasters that simulcast online are silent today to show that "silence" is what Internet radio may be reduced to after July 15th, the day on which 17 months' worth of retroactive royalty payments are due to the SoundExchange collection organization, following a recent Copyright Royalty Board (CRB) decision to raise royalty rates. The rate hikes increase fees by three to 12 times. The largest Internet radio station, Bay area-based Live365, for instance, would go from paying $1.5 million per year to $6 million to $7 million, thereby bankrupting the company. If the increased rates remain unchanged, the majority of webcasters will go bankrupt and silence on this date.

Record labels argue that the increase is necessary because album sales are down and the recording industry needs other sources of income to pay artists for their work. But, artists aren't the beneficiaries of the rate hike. "The major labels are fighting hard to retain as large a percentage as possible for digital rights... Artists still get pennies in comparison to the labels dollars," according to Wendy Day of the respected artist advocacy group Rap Coalition. Artists should be fairly compensated for the music they make, but these rate hikes aren't about fair compensation for artists.

The rate hikes are about keeping the money and control of who and what we hear in the hands of a few major record labels. Under the new CRB royalty scheme the smallest webcasters will pay the highest relative royalties in amounts shockingly disproportionate to their revenue. The six largest Internet-only radio services anticipate combined revenue of only $37.5 million in 2006, but will pay a whopping 47% (or $17.6 million) in sound recording performance royalties under the new CRB ruling.  In 2008 combined revenues will total only $73.6 million, but royalties will be 58% or $42.4 million. Satellite radio on the other hand, which has approximately $2 billion in annual revenue pays between 3 and 7% of revenue in sound recording performance royalties. Small Internet radio services are essentially bankrupted by the CRB ruling, with most anticipating royalty obligations equaling or exceeding total revenue.

The new rates mean fewer outlets to get the music and diversity we don't hear on broadcast radio. Putting webcasters out of business will only hurt artists more. They depend on Internet radio to get their music out to fans and build new audiences. When the webcasters go off the air, so do artists.

This is particularly alarming for youth, women and communities of color that have been pushed out of any meaningful participation in broadcast radio.  A recent study by Free Press found that despite compromising 51% of the U.S. population, women only control 6% of commercial radio stations. Racial or ethnic minorities make up 33% of the population but own just 7% of radio stations. For our communities, saving Internet radio is a matter of maintaining power in a media system wherein we have so little already. It means making sure we have choices and control over who and what we hear. It means radio belongs to everyone, not just who can afford it.

I know that even though Internet radio is silent today, we shouldn't be. The Internet Radio Equaslity Act has recently been introduced in both the House (H.R. 2060) and Senate (S. 1353). The Act provides reasonable royalties to artists and their labels and protects the rich variety of music online. Let's break the silence by calling our local representatives and urging them to co-sponsor the Internet Radio Equality Act.

Clear hear to take action now: http://centerformediajustice.org/actions/sign/link/12