ITV Digital, its attempt to create a terrestrial pay-TV rival to BSkyB, collapsed in 2002, blowing £1bn in the process.
While terrestrial broadcasters pay music publishers negotiated rates, no matter how many people are listening, online and satellite radio operators pay publishers — as well as labels and artists — for each new listener.
The royalty rates for commercial online Webcasters, of 0.00076 cents a song, have vexed Internet companies, since their terrestrial counterparts pay publishers and performers for each song played.
The Copyright Royalty Board increased the rates that it forces satellite radio but not terrestrial radio to pay.
For most labels and performing artists, this is the only money their recordings earn for radio play, since terrestrial radio pays only songwriters and music publishers.
Atari was banking on cashing in on the blockbuster movie "E.T. the Extra-Terrestrial," and paid Steven Spielberg, its director and co-producer, $20 million to $25 million for the rights to the film's name.
The big music labels have lobbied to get the U.S. government to really stick it to Internet radio stations, when terrestrial radio stations pay nothing to play songs and Satellite providers pay a greatly reduced rate.
Terrestrial radio broadcasters pay royalties only to music publishers, which control songwriting copyrights; digital services must also pay for use of recordings.
Ifetel has already stood up to Televisa, by allowing pay-TV firms to rebroadcast terrestrial channels without paying for the privilege.
For years they have also been pushing for laws that would require terrestrial stations to pay royalties to labels and artists.
In a quest to lure subscribers from free terrestrial radio, the pay satellite service SiriusXM is betting that some morning drive listeners want something other than straight news, partisan talk or local fluff, and it is backing a homegrown talent to develop the format.
