Don't Let Copyright Ruin WiFi

In 2009, smog won’t be the only thing that blankets Los Angeles. Mayor Antonio Villaraigosa recently proposed a wireless internet (WiFi) plan that would supply over 4 million residents in a 498 square miles radius with free or low cost wireless internet. The project would be completed in 2009 and would be one of the largest urban WiFi networks.

So if the proposed plan does come to be, what does this mean for the radio industry? The expansion of WiFi networks will allow internet radio to expand rampantly—ubiquitously accessible Internet radio will allow the musical diversity, accessibility and interactivity that radio consumers of the modern world desire. Internet radio is already on the rise, with “revenue from online streaming music radio has risen to $500 million from $49 million in 2003.”

With free internet available to everyone in Los Angeles, it will allow even the underprivileged easier access to Internet radio. There is already WiFi in many homes and commercial locations across the city, but with WiFi across entire metropolitan areas, the internet will become entirely universal. With WiFi, consumers would be able to access custom-made Internet radio broadcasts not only at home, but also over their mobile phones, or other multi-functioning internet ready devices (like the iPhone). WiFi will allow greater accessibility to these Internet radio stations and in turn higher number of listeners. Internet radio adaptors could be invented and installed in cars so that drivers could listen to the radio too (perhaps one of terrestrial radios last real successful venue these days).

But sadly once again, there are those out there that are working against for radio consolidators and small online indie outlets. The Copyright Royalty Board (CRB) proposed March 5 to change the way online radio stations pay royalties. They are currently determined by a percentage of revenue that each particular station makes, but if the new rule becomes law, they will be forced to pay per-song and by the number of listeners that each station draws (larger corporations like Time Warner's AOL Radio, Yahoo!'s online station, and Clear Channel's Online Music & Radio are already forced to do this.) The more hefty fees still can generate profit since they are such a large corporation, but for a smaller online radio stations, “could raise royalty fees paid by some online radio stations more than tenfold —enough to put many smaller stations out of business.”

If smaller stations weren’t able to continue production in the face of larger radio stations and the large conglomerates take over the market online as well, WiFi won’t be enough to help save the radio industry. But if CRB fails to pass the proposed increase in funding, digital radio accessed through universal wireless internet will be just the makeover that the radio industry needs. Let’s hope CRB is tuned in to this reality.