As broadcasters and musicians take their fight to Congress over whether radio stations should be held to the same standards as webcasters and satellite radio when it comes to paying royalties to artists when they play their songs, a few companies have found loopholes when it comes to their online streams.
DIYMedia.net reports that some webcasters have begun seeking out leases of HD Radio subchannels to subvert the need to pay royalties based on the current rules. However they fail to mention the biggest exploiter of the loophole.
Every “Exclusive” music channel on IHeartRadio is tied to an HD sub-channel somewhere in the country. Classic American Top 40 is KPEZ-HD2 Austin. Nick Radio is WHTZ-HD2 Newark. The new All-Michael Jackson channel that Clear Channel launched today is originating on KOLZ-HD2 Cheyenne, WY. Right down the line, you’ll hear a legal ID on all of the streams. The entire reasoning for that is to get around having to pay royalties to artists.