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The Internet Radio Fairness Act of 2012

Senator Wyden understands that innovation is the key to the growth and evolution of the Internet.  Public policy can foster that innovation by protecting the Net from unfair and discriminatory taxes, outdated or over-broad regulations, and undue legal liability.

Unfortunately, digital services for broadcasting music are one area of innovation on the Internet that is being stifled.  In 1998, federal laws were enacted that specifically constrained the development of Internet radio as a commercially viable service.  Despite stunting the growth of innovative new business models, the legacy music industry saw a massive decline in record sales.  Artist, consumers and rights holders are increasingly searching for innovative new models to better promote music and fairly compensate creators. 

Senator Wyden is introducing the Internet Radio Fairness Act (S.3609) to remove the regulatory shackles preventing internet radio from being commercially viable.  He is interested in your ideas on how to expand the music marketplace in ways that promote innovation, music diversity, and better compensation to artists.  Senator Wyden would like to hear from the public about their ideas and obtain feedback on the Internet Radio Fairness Act.

Please submit your ideas, suggestions and feedback below or tweet them using #FairWebRadio.

(Note: Comments will not be edited but those which are off topic, contain profanity, or are otherwise offensive will not be made public.)


Tell us what you think

Tell us what you think about this legislation.

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Comments

  • Jarod L.

    Spotify seems like a great means of guaranteeing compensation to artists / labels for e...
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    Jarod L.

    Spotify seems like a great means of guaranteeing compensation to artists / labels for every time one of their tracks is played, not to mention it is the easiest most convenient way to access all one's favorite music as well as constantly be exposed to stellar new musicians. Please support and protect such platforms!! 

  • Lisa N.

    It all comes down to money...and that's such a shame!! No one does these things for the...
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    Lisa N.

    It all comes down to money...and that's such a shame!! No one does these things for the pure pleasure it brings the masses and of course "There is no such thing as a free lunch." So, why not give artists a share in the business? This way it is to their best interests that Internet free radio works. I have no problem with advertisers on the free radio but asking for a donation (tax free) every now and then from loyal, grateful listeners might not be too bad either. It would certainly be worth it and I would donate what I could. Why wouldn't you?? 

  • Eric G.

    Thank you for introducing the Internet Fairness Act of 2012. I think this ia great piec...
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    Eric G.

    Thank you for introducing the Internet Fairness Act of 2012. I think this ia great piece of legislation as online music is changing the music entertainment industry in real time and our government should consider and recognize this paradigm shift. Internet radio is a wonderful and cost effective way to introduce and explore music. These services need to be a financial viable business to the private companies that are running them but at the core we need to acknowledge and support the artists whose work we are all enjoying. I am happy you are our senator and that you are putting this bill before congress. I think you are doing a good job representing the people of Oregon and thank you for your dedication and service to our country and state

  • Chris S.

    I am pleased to hear that you are presenting this bill in congress! I absolutely agree ...
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    Chris S.

    I am pleased to hear that you are presenting this bill in congress! I absolutely agree with this act and think this should be passes unanimously. I have discovered more up and coming artists through internet radio sites like Pandora and iheartradio than I ever would have through XM or Sirius. Having Pandora has been the main catalyst to me purchasing these new artist's music as well. I am more apt to purchase their works if I have a chance to listen to a few songs off their album before purchasing. Thank you again for championing this cause. I am even more proud to be an Oregonian knowing our senator is involved in yet another worthy cause. 

  • Rita Ann E.

    I'm in support of the Internet fairness act. Let us listen to music 

    ...
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    Rita Ann E.

    I'm in support of the Internet fairness act. Let us listen to music 

  • Nancy K.

    I'm in support of this Bill. Everything incorporates the internet, so it only makes sen...
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    Nancy K.

    I'm in support of this Bill. Everything incorporates the internet, so it only makes sense that prices be fair as well. 

  • Lee T.

    Equal footing serves all consumers. New technology should not be burdened to protect es...
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    Lee T.

    Equal footing serves all consumers. New technology should not be burdened to protect established companies / technologies. Internet radio, sat. radio, cable radio, should all pay the same fees and royalties. Each technology requires infrastructure costs, marketing and so forth. Let the best company /technology win and all consumers will win too. 

  • Kris F.

    I think that internet radio should not have to pay any different than any other radio f...
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    Kris F.

    I think that internet radio should not have to pay any different than any other radio format. 

  • John F.

    Senator Wyden, I greatly appreciate you introducing the Internet Radio Fairness Act int...
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    John F.

    Senator Wyden, I greatly appreciate you introducing the Internet Radio Fairness Act into Congress for passage as a new law. I fully support your effort and the passage of this bill. 

  • Patrick D.

    I am the owner/operator of an upstart Internet radio business and your legislation is d...
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    Patrick D.

    I am the owner/operator of an upstart Internet radio business and your legislation is desperately needed. Prior to starting my own business in February, I worked for 10 years as a terrestrial radio broadcaster. I saw what my station was paying to the publishers yearly for their performance licenses - roughly $10,000 per year. That license came WITHOUT restriction and allowed for both terrestrial and internet broadcasting. Making the switch to an Internet-only provider has shown me the differences. To purchase licensing via ASCAP, BMI, SESAC, and SoundExchange - as an Internet only provider - I'd be on the hook for roughly $150,000 a year. Luckily I've found a company that's negotiated bulk arrangements with the publishers and I pay a monthly fee based upon listenership and revenue. I can count on a minimum of 25% of my gross to go right back out the door to the music publishers. 42 percent of Americans listen to "Internet" radio regularly. More people are getting their music from us, and we're not going anywhere. Please make the playing field fair. 

  • Angie J.

    I am an avid listener of internet radio and was one of the first to get sirrius radio w...
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    Angie J.

    I am an avid listener of internet radio and was one of the first to get sirrius radio when it came out. I actually paid for four subscrptions. I do understand that nothing is free and in this current economy some things just are not fair. But I do feel that the Internet Radio Fairness Act although not perfect is a good start to a level playing field for sites like Pandora which I listen to daily. It is of course important to support and protect the interest of the artists but with the rising costs of everything the only way some of us will ever hear these artists are through sites such as Pandora. You have my support and I will try to educate others on this subject...Thanks 

  • Stan G.

    First of all I would like to thank Sen. Wyden for his support of the Internet Radio Fai...
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    Stan G.

    First of all I would like to thank Sen. Wyden for his support of the Internet Radio Fairness Act. Outdated and unfair regulations stifle the creative growth of companies and artists alike and I believe this bill will help greatly in the effort to introduce new and innovative music artists to the world at large. Internet radio is a huge medium for artists to become recognized and with out it many (probably 1000s) would not even get the chance to have their music heard. Internet radio is a staple of the future and taxing and regulating it to death is two steps back. 

  • David M.

    I know I am not one of your constituent's, but I would like to thank you for addressing...
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    David M.

    I know I am not one of your constituent's, but I would like to thank you for addressing an issue that has prevented our company from moving forward. We are a minority owned micro-startup. Our website is LatinoGigs.com. Our business plan includes an Internet radio station for our site. Although we have moved forward with a site design that includes Internet radio, we have not been able to release it because of the complicated and very expensive royalty fee structure. Our overall goal in starting this company was to begin a venture that would give jobs to those that need them. Laws, such as the Digital Millennium Copyright Act of 1998, which prevent companies from being viable and profitable firms must be changed. Your efforts are a positive step in the right direction. Thank you again, and if there is anything I or our company can do to help, please let us know. 

  • Alan S.

    Internet radio and terrestrial radio should play by the same rules. The purpose of terr...
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    Alan S.

    Internet radio and terrestrial radio should play by the same rules. The purpose of terrestrial radio had historically been to make a profit by selling advertising and offering free music listening to the audience. The audience then bought music which provided revenues to the labels supplying the music being played on the radio. Subscriptions do not exist on terrestrial radio; they exist on internet radio to provide revenues to supplement advertising revenues to enable payment of the high statutory rates to Soundexchange. Let the market seek its own level. Eliminate Soundexchange and government from the equation. One of two things will happen: 1. Internet radio music will be free for listeners and free to use by the websites and these websites will simply promote sales of music played like terrestrial radio; or 2. Performance of music on internet radio will be tied exclusively to a percentage of subscription and advertising revenue set by the market WITHOUT any fixed amount per performance per listener needed to be paid...the latter is what is destroying the music industry. Let the market work and stop statutory regulation in an area that government should not interfere. 

  • Richard H.

    Internet Radio Fairness Act: I am a Pandora web based radio solution and have been enco...
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    Richard H.

    Internet Radio Fairness Act: I am a Pandora web based radio solution and have been encouraged to contact you. (here is where this is different than what you might expect). Pandora indicates there is a different pricing structure for royalty payments for Satellite Radio than web radio. I say level the playing field, eliminate special deals for satellite delivery, step back, and allow the free market to determine winners and losers in the radio delivery industry. If there are subsidies or pricing inequity, please check your free market gut and assure me it is for a valid national reason and not a un-necessary stipend offered to 1 company over another for an outdated reason. 

  • David E.

    I'm asking that you support the Internet Radio Fairness Act. This bipartisan bill will ...
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    David E.

    I'm asking that you support the Internet Radio Fairness Act. This bipartisan bill will correct the incredible inequity in how different digital radio formats are treated under the law when it comes to setting royalties. The difference is quite extraordinary. In 2011, Pandora paid over 50% of our revenues in performance royalties, while SiriusXM paid less than 10%. 

  • Gary M.

    Thank you for introducing the Internet Fairness Act of 2012. You have my support on thi...
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    Gary M.

    Thank you for introducing the Internet Fairness Act of 2012. You have my support on this act. Internet radio is a great, interactive source of entertainment which needs to remain competetive with other forms of music while ensuring a revenue stream to the artists. BTW - I think you are doing a solid job of representing the people of Oregon and hope you can gain the support of colleagues to help President Obama move this country forward. 

  • Katherine S.

    This bill makes perfect sense to me. It is only fair that all of the Internet sources p...
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    Katherine S.

    This bill makes perfect sense to me. It is only fair that all of the Internet sources pay the same rates, regardless of how much income they generate from advertising. The more music played means more money generated for the artist. I am very much in favor of this law because it put the income in the hands of the artists as opposed to companies generating income based on advertising to consumers who only want to hear the music. I am much in favor of supporting the artists as opposed to the individual Internet music providers. Regards

  • Ryan S.

    Everything nowadays is incorporating the internet, there is no need to have radio inter...
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    Ryan S.

    Everything nowadays is incorporating the internet, there is no need to have radio internet restrained in shackles. Thank you Senator Wyden for introducing the Internet Radio Fairness Act!! 

  • Brian R.

    Ron, I tremendously enjoy Pandora radio. I won't pretend to know any of the legal or po...
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    Brian R.

    Ron, I tremendously enjoy Pandora radio. I won't pretend to know any of the legal or policy wonk issues with this act, but if Pandora's business model is in jeopardy due to government making rules inequitable compared to any other broadcast format (sattelite, cable, or even terrestrial), that should end. While it is important to me to protect artists and have them receive fair royalties, I find the cost of satellite radio to be prohibitive, and will soon cut cable due to high cost. My only remaining way to enjoy a variety of music, including exposure to new artists that I would not otherwise know, is through internet radio. Thanks for you leadership on this issue. 

  • Chris P.

    Senator Wyden, Thank you for introducing this legislation. I strongly support your effo...
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    Chris P.

    Senator Wyden, Thank you for introducing this legislation. I strongly support your effort to update our current anachronistic laws governing online broadcasting royalty rates.

  • Kim A.

    I Feel that Pandora having to pay more than 50% needs to be looked at and changed I wan...
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    Kim A.

    I Feel that Pandora having to pay more than 50% needs to be looked at and changed I want to see the artists get the credit that they deserve .The listeners out here are the ones that deserve to here there art with out any problems . I enjoy Pandora very much it has helped me in more ways then any one will ever know! as I am the (company) is touching many other people in the same way. Pandora is the best site that allows me find the music I love need and appreciate to the fullest! Keep going on this I believe it is the right thing to do. Thank You 

  • Tom H.

    Out here in rural Oregon, we have a very limited choice of terrestrial radio. Internet ...
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    Tom H.

    Out here in rural Oregon, we have a very limited choice of terrestrial radio. Internet radio gives us that choice. For instance, I listen to Radio Paradise almost exclusively when at home. Or stream PBS since the signal is poor at home. I support The Internet Radio Fairness Act of 2012 100% 

  • Richard V.

    Senator Wyden, Thank you for introducing the Internet Radio Fairness Act. I strongly su...
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    Richard V.

    Senator Wyden, Thank you for introducing the Internet Radio Fairness Act. I strongly support this. Thanks again, 

  • Charlie I.

    Please stop discrimination against internet radio. I support the Internet Radio Fairnes...
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    Charlie I.

    Please stop discrimination against internet radio. I support the Internet Radio Fairness Act. 

  • Mary A.

    Dear Senator Wyden, My family and I are avid Pandora listeners. We live in a rural, mou...
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    Mary A.

    Dear Senator Wyden, My family and I are avid Pandora listeners. We live in a rural, mountainous area where the local station fades out at sunset, which is about 5:00 p.m. in the winter, when radio is a nice diversion. With Pandora we get to listen to the music that each family member enjoys, rather than just the one station available locally. Thank you for sponsoring this bill. We all want musicians to earn profits from their skills, so I believe that unchaining the internet music sources will ultimately produce more income than the traditional methods that are being left behind with new technology. Thank you, 

  • Matt G.

    I know there are so many important issues to worry about these days, but I would like t...
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    Matt G.

    I know there are so many important issues to worry about these days, but I would like to let you know that I would appreciate your support of the Internet Radio Fairness Act. I know there is a lot of money out there trying to keep the status quot with respect to how I consume information, but it is important to me that I be free to listen, watch, and read in a way that I choose. The freedom of the internet is very important to me and everyone I know in my age group. Hopefully you will stand with us on this issue. Thanks

  • Carsteen D.

    I am in favor of parity across the board, which means bring terrestrial radio stations ...
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    Carsteen D.

    I am in favor of parity across the board, which means bring terrestrial radio stations up to the same standards as satellite and internet radio. Today internet radio seems to be unfairly held to pay more in royalties, so I see the Internet Radio Fairness Act as a good first step, and I support it for that reason, however there must be continuing effort made to bring terrestrial radio up to the same level in order to ensure that artists are fairly compensated no matter what the medium is that their music is played through. Overall this will help continue to drive innovation in all forms. 

  • David R.

    Let the market place work and keep the government out. If certain programming works and...
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    David R.

    Let the market place work and keep the government out. If certain programming works and makes money, let them make it and pay taxes. If certain programming does not work and they don't make money let them change or go out of bussiness. Stay out of it..... 

  • Kevin M.

    Dear Senator, As a United States citizen who believes in fair and equal opportunity for...
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    Kevin M.

    Dear Senator, As a United States citizen who believes in fair and equal opportunity for all. I support the Internet Radio Fairness Act of 2012. However, as a man who is also concerned for the Artist who are paid their due for their works. I also believe it is fair that we have the foresight to realize that the Radio FM/AM does not have to pay any money to broadcast music. Therefore, I also support the Interim FIRST act of 2012, believing that, even though an unfair tax is being imposed upon Radio, hindering public spread of music easily, it allows the artist fair compensation for the loss they receive with the lowering of payments from the Internet Radio Fairness Act of 2012. If it were possible for the Internet Radio Fairness Act of 2012 to amend such changes that reflect the Radio AM/FM business to also pay royalties to the Artist, then I would vote only for one bill. 

  • Marquis M.

    Internet Radios is great. Many would agree but those who oppose it usually have some ti...
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    Marquis M.

    Internet Radios is great. Many would agree but those who oppose it usually have some tie to the recording industry. Many years ago when Sean Parker founded Napstar, he did it with wrong motives and his peer-to-peer file sharing Internet service became extinct when he went to jail. But the concept didn't go away. The model has been reformed into something very successful called iTunes. The point here is we should not limit innovation we should encourage it. The internet radio fairness act would allow for the creation of new and innovative companies that would only increase the revenue stream of the recording industry. Let's put everyone on the level playing field by 1. increasing what radio and other traditional forms pay and 2. lesson the burden of new more innovative techniques like internet radio. The average should be around 18% - 28%. I think that is the fairest way to ensure that everyone is on a level playing field. Many will not agree but again lets not look at this from who's side we stand on but on which line would be the best to walk for both sides. Let's allow innovation to take its course. 

  • Peter H.

    Senator Wyden, I totally support the "Internet Radio Fairness Act" and support your eff...
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    Peter H.

    Senator Wyden, I totally support the "Internet Radio Fairness Act" and support your efforts. Yes, A level playing field is necessary in this competitive area. Thank you for sponsoring this legislation. 

  • Robert G.

    It's not fair that internet radio websites, like Pandora, have to pay more fees or taxe...
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    Robert G.

    It's not fair that internet radio websites, like Pandora, have to pay more fees or taxes than Sirius XM. Just because one company plays via radio and another through the internet shouldn't mean that one company should pay more just to provide the same services. 

  • Daniel G.

    I believe that radio on the internet should be no more expensive than that available ov...
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    Daniel G.

    I believe that radio on the internet should be no more expensive than that available over the air waves or elsewhere. As a teacher I use sites like Pandora on a regular, if not daily, basis. It should not cost the companies more to make that type of media available online than elsewhere. 

  • Shay R.

    I am fine with more commercial time if that will help support free internet radio, and ...
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    Shay R.

    I am fine with more commercial time if that will help support free internet radio, and I think others would be as well. It seems like advertising is one of the key factors to making internet radio more commercially viable. Why can't the model mimic conventional radio with the exception that I pick my genera? "virtual DJ" I like being able to purchase the music straight from the internet radio. I also enjoy write ups on the artist and music type at the same time as the song is referenced and is being played. This is a major benefit to internet radio over conventional radio. A music video internet radio may be a good idea, if that does not already exist. Youtube channels taken to an internet radio level, if you follow me. I know they run ads on top of their videos. Can they access artist concert/event calendars? Through RSS, users could click easily to see close concert times dates and book tickets, or receive notifications through the internet radio app. just some thoughts. 

  • Russell G.

    While I like the proposal, I don't agree with having the President nominate the judges,...
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    Russell G.

    While I like the proposal, I don't agree with having the President nominate the judges, and the Senate confirm them. This is way to much overkill for this position. Additionally, this would lead the position to be much more of a political position, than needs to be. I do applaud you for coming up with this bill, and hope that it gets voted on sooner, rather than later! 

  • Karen J.

    I realize that I am not from your state, but as the author of this bill, I believe you ...
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    Karen J.

    I realize that I am not from your state, but as the author of this bill, I believe you should hear from all Americans. Here are my thoughts. As a consumer of both internet radio and terrestial radio (really only in my car), I do think it is unfair for there to be any difference in the royalties paid to the artist by radio stations, cable, satelite and internet radio. As an end user, I see no practical difference in receiving music via Sirius, Pandora, local stations or through my TV. Royalties paid to the musicians should be a constant business cost regardless of what type of delivery to to the consumer that the business has. It is that simple. However, please ensure that the artist will still get fair market royalties paid to them from all business models. Thank you

  • Matthew F.

    There needs to be 1 standard across all Internet media streams for what is paid. Perhap...
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    Matthew F.

    There needs to be 1 standard across all Internet media streams for what is paid. Perhaps I do not understand the economics of the situation but charging differently for different media streams seems almost to be an attempt to eliminate one type of stream in favor o another. 

  • Thomas O.

    I am not in the internet business or the music business but I am a consumer of both and...
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    Thomas O.

    I am not in the internet business or the music business but I am a consumer of both and I love internet radio; it is now pretty much all my wife and I listen to for music because it is the only source we know of to hear the music we love. That music is classic, American to the core "rockabilly" music that started in the 50's (Elvis, Carl Perkins, Johnny Cash, etc.) and still has appeal today. This music is not just a history lesson; it is more than just old, dead "50s" music. Listening to this music is not like watching an old Fred Astaire movie. We don't just "listen," we "dance." Sad to say, but if all we had to go by was commercial radio we would not be dancing very much. We seek this music out. Our number one social activity is to go out dancing. This is social/economic activity in our local economy. We patronize businesses (dance halls, bars, clubs, country fairs, etc.) that provide bands and the opportunity for us to dance. We go to Las Vegas for the annual Viva Las Vegas rockabilly festival. I consider going to Europe to attend festivals. There are great bands out there today playing the old songs and just as many new songs and we want to hear and enjoy these bands (and pay them and/or buy their music) but you won't hear them on commercial radio. I have not even set the push button tabs on my car radio to any music station because it is a waste of my time. Bands are not going to be traveling around the country to play their music if nobody knows who they are. They have no following and are not likely to get one if nobody hears their music. We need to hear them and they need to be heard by us and as far as I can tell, the only way to do that right now is via internet radio. This music may never be the top commercial type of music so it needs an outlet that is available to a wide geographic area. When I listened to what I think is now defunct "Rockabilly Radio" the station listed the number of people listening in the U.S, Germany, Great Britain, Japan, etc. We now listen to DJ Del Villareal's Go Cat Go The Rockabilly Show from Michigan on a LIve 365 station. Tune in! If you like to dance, you'll get the urge. Just to show you how significant this is to me, a few years ago I donated $100 to the old "Rockabilly Radio" station when the person (Don Freeman from Baltimore) who ran it started running ads begging for money and detailing how expensive it was for him to pay royalties out of pocket to make the station viable. I regularly give to official charities but I never gave anything to anybody who was not an official charity before or since. When I thought about all the great times I had had dancing to this music with my wife I could not ignore the request. Apparently, it was not enough as the station disappeared. I support saving internet radio. I will contact my local political officials (both parties). 

  • Jenny S.

    Music is the heartbeat of our culture...don't put a price on it! Please support making ...
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    Jenny S.

    Music is the heartbeat of our culture...don't put a price on it! Please support making access to music fair across all technologies. I so appreciate having resources like Pandora to lighten my mood and provide me insights to new artists, new musical styles and rich information on my favorite artists that I would know otherwise! I support equity across musical stations! 

  • Danny D.

    I think internet radio is an incredible tool for getting new music out to the masses in...
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    Danny D.

    I think internet radio is an incredible tool for getting new music out to the masses in an efficient way. With the changes the internet has brought to the music world, we see a major shift in where people discover and consume music. With true radio still following old formats, and public radio funding shrinking every day, it would be fantastic to see the internet radio world thrive with more options for artist to reach out and listeners to grab. Perhaps we should look at the BBC and their systems for radio. Or even the UK as a whole with labels like rinse.fm. I find myself wishing we had an equivalent in the United States. Hopefully this legislation will make it easier for something like this to happen. 

  • Robert M.

    Thank you for introducing the Internet Radio Fairness Act. I wholeheartedly support it....
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    Robert M.

    Thank you for introducing the Internet Radio Fairness Act. I wholeheartedly support it. Again thank you. 

  • Brian M.

    To whom it may concern, Over the course of my life I have used the internet primarily f...
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    Brian M.

    To whom it may concern, Over the course of my life I have used the internet primarily for the use my radio experience. I prefer to listen to music over the internet as well as watching my television. I do not believe that one industry should have an unfair advantage over another because of the choice of their delivery system. I will never use Sirius Radio because I believe that the comforts of life in America should allow me to listen to the music I want when I want it. Pandora and Google provide me this option with their music services. It saddens me to hear that Sirius Radio pays less in music royalty fees. It provides Sirius Radio an unfair competitive advantage over other companies. When one industry has an unfair competitive advantage over another, this creates a monopolistically competitive environment where the few earn more than others. I personally feel that to breed innovation there must be an equal playing field, which allows everyone the opportunity to earn the same amount for the same thing. How would the Congress like to pay 80% more than everyone else the rest of their lives for everything they bought just because they served the country? Likewise, how would the American people like it if congress passed a bill that said Wal-Mart would be required to raise their prices 80% because they have never served in congress. Everyone in America decides if they want to pay for their music and television, if they do not want to pay for it. This means that the choice should not affect the company providing the service. Please do everything possible to level the playing field. Respectfully, Brian M. 

  • Erik S.

    As a fan of Pandora, I am proud that Senator Wyden, MY Senator, helped create and intro...
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    Erik S.

    As a fan of Pandora, I am proud that Senator Wyden, MY Senator, helped create and introduce this bill. I would like to say thank you and keep fighting for this bill to pass. 

  • Ronald M.

    well i like internet radio don't take it away just make it better and tax free you need...
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    Ronald M.

    well i like internet radio don't take it away just make it better and tax free you need make money not tax it