silentbrad writes: From the GLobe and Mail: A number of Canadian media companies have joined forces to try to shut down a free music website recently launched by the Canadian Broadcasting Corp., claiming it threatens to ruin the music business for all of them. The group, which includes Quebecor Inc., Stingray Digital, Cogeco Cable Inc., the Jim Pattison Group and Golden West Radio, believes that CBCmusic.ca will siphon away listeners from their own services, including private radio stations and competing websites that sell streaming music for a fee. The coalition is expected to expand soon to include Rogers Communications Inc. and Corus Entertainment Inc., two of the largest owners of radio stations in Canada. It intends to file a formal complaint with the CRTC, arguing that the broadcaster has no right under its mandate to compete with the private broadcasters in the online music space.
... 'The only music that you can hear for free is when the birds sing,' said Stingray CEO Eric Boyko, whose company runs the Galaxie music app that charges users $4.99 a month for unlimited listening. 'There is a cost to everything, yet CBC does not seem to think that is true.' ... The companies argue they must charge customers to offset royalty costs which are triggered every time a song is played, while the CBC gets around the pay-per-click problem because it is considered a non-profit corporation. ... Media executives aren’t the only ones who have expressed concern. When the CBC service was launched in February, the Society of Composers, Authors and Music Publishers said that when it set a flat fees for the more than 100,000 music publishers it represents, it never envisioned a constant stream of free music flooding the Internet.