Organizations ranging from Internet radio services to broadcast companies have joined to form the Internet Radio Fairness Coalition and to urge Congress to support the Internet Radio Fairness Act of 2012.
The coalition supports this legislation because they believe it will help to foster what they describe as a “sustainable business model” for the 21st century age of digital music (including both Internet and satellite radio) by creating a single standard for royalties. The current royalty system is overseen by the Copyright Royalty Board and divides digital music into Internet and satellite radio, and the coalition claims that this system does not support artists and record labels, nor does it encourage entrepreneurs to invest in the development of new methods of music delivery.
The coalition brings together some traditional competitors and puts them on the same team in a way. Clear Channel Media & Entertainment, which runs iHeartRadio, and its new media competitor Pandora are both founding members; and the announcement placed quotes from Clear Channel CEO Bob Pittman next to comments by Pandora founder Tim Westergren.