THE BEAST

Photo by israel palacio on Unsplash

In today's era, internet radio has gained popularity. With millions of people tuning in to their stations, it's no surprise that the issue of internet radio licensing has become a hot topic. Recently, there has been a focus on blanket licenses.

Imagine a world where you can seamlessly tune in, explore, and vibe to your favorite stations. Well, that's the magic of Internet radio, capturing the ears of millions. But as the beats play on, a conversation brewing around blanket licenses, stirring curiosity and discussion. In this blog post, we're going to unravel the mystery behind blanket licenses, understanding what makes them noteworthy in the vibrant landscape of internet radio. 

Understanding Blanket Licenses

In the realm of Internet radio, a blanket license is an agreement that allows radio stations or streaming services to play music from a catalog of songs by paying a predetermined fee. A blanket license for Internet radio is typically acquired from performing rights organizations (PROs) like ASCAP, BMI, and SESAC. These organizations represent songwriters, composers, and music publishers as they negotiate license agreements with radio stations and streaming platforms.

Blanket licenses differ from track licenses, where each rights holder needs to be approached for permission to play their music. This process can be quite time-consuming and burdensome, especially when dealing with thousands of songs.

The Critique of Blanket Licenses

Blanket licenses have gained attention lately due to the debate surrounding their impact on songwriters and artists. Critics argue that these licenses fail to compensate creators and result in the distribution of royalties. They claim that the current licensing system favors radio conglomerates and streaming platforms, disadvantaging artists and smaller music publishers.

One concern is the complexity of tracking and distributing royalties within blanket licenses. Performance Rights Organizations (PROs) collect license fees from radio stations and streaming platforms and then distribute them to their members based on reported usage. However, instances have been discovered where songwriters and artists have identified discrepancies and inconsistencies in royalty payouts, leading to accusations of practices.

Transparency is another issue plaguing the licensing process. Critics contend that negotiations and terms for these licenses often occur behind doors, making it challenging for artists to comprehend how much they should receive or how their music is being utilized. This lack of transparency fosters a sense of mistrust between creators and PROs, exacerbating a strained relationship between artists and the music industry.

What are the Proposed Solutions?

To tackle the concerns surrounding blanket licenses, there have been suggestions. One idea is to establish a fairer system for distributing royalties. Supporters argue that PROs should be more transparent in their reporting and distribution practices, ensuring that each artist receives their share of royalties. Furthermore, there have been calls for increased oversight and regulations to prevent abuse and ensure an unbiased licensing process.

Some propose an approach to licensing. Through blanket licenses that encompass catalogs, artists and music publishers could have the option to negotiate individual licenses or select specific songs for inclusion in a blanket license. This would provide creators with control over their music and potentially lead to higher royalty payouts .

Lastly, there have been discussions about updating the licensing infrastructure for Internet radio. As technology advances and new methods of distributing and consuming music emerge, it may be necessary for the current licensing system to adapt accordingly. This could involve creating licensing models that better reflect the evolving landscape of the music industry.

Conclusion

For quite some time, blanket licenses have been widely used in the realm of Internet radio. These licenses enable radio stations and streaming platforms to play music from catalogs without having to obtain licenses. However, recent scrutiny has brought attention to the drawbacks of licenses and the necessity for reform. As the debate continues, it becomes crucial for all parties involved – artists, music publishers, radio stations, and PROs – to collaborate towards a licensing system that adequately supports creators and ensures compensation while offering listeners a seamless music experience.