LYCOS RETRIEVER 
Internet Radio: Royalties
built 613 days ago
At the request of the Recording Industry Association of America, the CRB ignored the fact that Internet radio royalties were already double what satellite radio pays, and multiplied the royalties even further. And webcasters were not making much as it was since advertising revenue is just beginning to develop.
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The future of Internet radio is in doubt. Royalty rates for webcasters have been drastically increased by a recent ruling and are due to go into effect on July 15 (retroactive to Jan 1, 2006!). If the increased rates remain unchanged, the majority of webcasters will be bankrupt and immediately forced silent.
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The newest SoundExchange royalty rates are so dangerous to internet radio because they effectively eliminate both of these advantages to streaming. Not only will royalties see a 150 percent increase over the next five years, but a $500 fee per channel will ... be introduced.
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U.S. Court of Appeals in Washington, D.C., denies Webcasters' motion to delay the July 15 royalty-rate hike, putting the ball for saving most Internet radio stations' streams in Congress' court. [Loudersoft]
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