NJBA Weekly Newsletter, Friday, July 22, 2007

Sony To Sell HD Radios

The world’s largest manufacturer and seller of radios, Sony Corp., announced, in two weeks, come July 1, the company will be selling two HD Receivers to consumers. One unit is a home system while the other is for a car. The car tuner will work with all Sony car radios now installed. The home unit is a stand alone radio receiver and is priced at $200.00, but is expected to get cheaper as more radio manufacturers join the parade of sellers. Meanwhile, you have two more weeks to get a home receiver for $59.00, after a $50.00 rebate from iBiquity.  The HD Radio Alliance projects that more than 1.5 million HD radio devices will be sold in 2007, as prices have dropped significantly from the time the first products debuted more than two years ago at about $800.00. 

Samsung Readies Low Priced, Low Power HD Chip

According to Radio World, Samsung Electro Mechanics, plans to introduce a low power, high performance chip for use in portable and home HD Radio receivers. The manufacturer said the chip is designed to support advanced features for HD radio with target applications in mobile phones, portable media players, portable navigational devices, table radios and home audio-video components. The company anticipates samples will be ready for receiver and other device makers before the end of this year with production in quantities in first quarter 2008.

Radio Bankruptcy?

Could a majority of Radio Broadcasters go bankrupt as a result of the new rates that record companies want for allowing the streaming of their music? According to some broadcasters, the answer is yes. As a result, many streamers, both broadcasters and independents, will pull their web casts off the air next Tuesday to protest the Copyrights Boards new royalty rates. On July 15, the new rates take effect, and some web casters will be forced to pay nearly two years worth of increases, retroactively. That’s a hefty amount of money. Further, they will face between 300% and 1200% rate increases going forward. There is a bill pending in Congress to help the situation, however, the future of the bill is unknown. 

Two Billion Bucks

That’s the amount of money it could cost broadcasters a year if the recording industry has its way. The record companies are looking to change the copyright laws so broadcasters would have to pay them a performance right every time one of their records was broadcast over the air. The industry is forming a coalition of recording artists and record labels to fight for this new performing right on Capitol Hill. They have plenty of star power, and this sometimes goes a long way to impressing members of congress. This is the big battle that broadcasters face going forward. This fee would be in addition to the fees paid to ASCAP, BMI and SESAC.   

Double check your ABIP status.  Don’t let your insurance run out!

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