Friday, July 13, 2007

Online radio stations face potential closers due to increased royalty fees

BBC News--

On Wednesday, an appeal court declined to grant a petition by net radio stations to delay the introduction of new royalty fees which could increase payments to smaller stations by 1200% while larger stations go to up to 300% more.

The new fees will a flat fee increasing from .08 to .19 PER-SONG, PER-USERS in addition to a $500 fee for every channel owned by a station.

An Internet radio station with an average of 1000 users, would have to pay royalty fees of
.19 per track
x 10 tracks per hour
x 1000 listeners
= $1900 per hour

Previously, stations paid an annual fee plus 12% of their profits.

Additionally, the fees to be collected will retrospect for 2006.
" Jake Ward, a spokesperson for SAveNetRadio coalition, said: we are disappointed that the court failed to acknowledge the irreparable and quite frankly, devastating effect these new royalties will have on the Internet radio industry. "

The coalition is urging supporters of his campaign to lobby congressmen to back the new bill, the Internet radio equality act, which would bring net fees in line with satellite radio station.

Additional information{Recording industry Association of America [RIAA]}--

7 Comments:

Anonymous Anonymous said...

Video didn't kill the radio, however commerce will.

9:40 AM  
Blogger MAX Redline said...

Update: this whole thing has been put on hold. In testimony before congress, an RIAA enforcement potentate stated that things will continue as they have for the forseeable future.

11:56 AM  
Blogger : JustaDog said...

Big Government, getting bigger.

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