Internet Radio on Death Row (once again)
13 March 2007
The Copyright Royalty Board (CRB) has announced its decision on Internet radio royalty rates, rejecting all of the arguments made by Webcasters and instead adopting the "per play" rate proposal put forth by SoundExchange(a digital music fee collection body created by the RIAA).The rates are so high that no internet radio station can afford to exist. These rates are HIGHER than terrestrial radio. The Radio and Internet Newsletter estimates that AOL's online radio would pay $1.65 million a month. Pandora, with a similar listenership would have to pay similar. Last.fm is based in the UK, but I'm sure they'll figure out some way to also put them out of business. The darkest thing is that the rates are RETROACTIVE. They just decided what the rates are and are (I would suppose) going to send these businesses a bill. This entire scenario also played out in 2002 when CARP (Copyright Arbitration Royalty Panel) put forth their recommendation for similarly high rates. The idea, it seems, is to force small players out of the market and only allow large radio stations to operate; just as is the case on normal radio. via
http://www.linuxjournal.com/node/1000196 Radio and Internet Newsletter
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