SoundExchange Wants DRM in Net Radio

The salvation of Internet radio may come at a hefty price: DRM.

SoundExchange has offered to cap the $500 per channel minimum fee at $50,000 per year for webcasters who agree to provide more detailed reporting of the music that they play and work to stop users from engaging in ’streamripping’ — turning Internet radio performances into a digital music library.

I have never ripped a music stream in my life, and neither has anyone I know. Given the hundreds of other ways one can pirate high-quality music, streamripping is just stupid. SoundExchange is chasing an imaginary threat, in the process killing a real opportunity. Fred Wilson tells us why DRM in Internet radio is an insane idea.

The next big thing is music streamed to your living room, your cell phone, and your car directly from the Internet. There is a huge amount of revenue in that business for the rights holders. But if the streams are “protected” in some way, we will never get the innovation and choice in devices that will make the streaming music market the most vibrant.

I’m inclined to side with Leo Laporte on this one: if record labels want to kill themselves, let them. That’ll leave room for independent artists to rise.