Independent Internet Radio Faces Extinction from Proposed Royalty Rates
Monday April 23, 2007
If you haven't yet heard, there's a new royalty rate looming for Internet radio station owners which might severely damage the state of streaming radio. According to mp3.com: "The new rates would require Internet broadcasters to pay $.0011 per 'performance,' defining a performance as the streaming of one song to one listener; thus a station that has an average audience of 500 listeners racks up 500 'performances' for each song it plays."
In a separate article from mp3.com it was reported: "Mark Lam, the CEO of Live365, told the Associated Press that under the new royalty rules, 'there is no industry.'"
More: Webcasters Can Survive by Becoming King of Their Content (Opinion)
What Happened On This Day in Radio History: April 23
Comments
I really hope that this (proposed?) rate hike will not affect Mercora, the service I get my Internet radio through. With their huge online catalog, and all the thousands of “DJ’s,” plus the “M” application, it would be difficult to go without what they have to offer.