The end of Internet Radio?

[Zetan]

The future of Internet radio is in immediate danger.  The Copyright Royalty Board in Washington, DC has more than tripled the royalty rates for webcasters and left unchanged they will kill Internet radio.  These exorbitant rates go into effect on May 15 (retroactive to Jan 1, 2006!).  Without Congressional action the majority of webcasters will go bankrupt and silent on this date. We need your help. Please take a moment to send a letter to your member of Congress to keep Net radio from being silenced.

http://savenetradio.org/

http://www.shoutcast.com/

I have no comment 

[margaras]

Retroactive to a over year ago?  How does that work? 1.25 years worth of licensing/royalty fees all charged in one lump sum?  Oh yeah... that could definitely spell disaster.

Of course, we could just populate internet radio with unsigned artists and ignore this crap...

[banshel]

Either way Internet radio is here to stay i think.

[Reality12]

internet radio is here to stay, but with greedy corporate assholes that threaten to break you financially for streaming, it'll just become another napster.

[Lord Anubis]

I already have contacted my State Representatives on this issue

Hope Net Radio never ends

[Zetan]

Thursday, April 26, 2007
Inslee introduces "Internet Radio Equality Act"

A bill has been introduced that will save independent internet radio by setting these royalties at the same level paid by satellite radio services, a reasonable amount (7.5% of gross revenues) which will benefit the artists as well as not bankrupt net radio stations. Call your Representative right now and ask to cosponsor the "Internet Radio Equality Act", just introduced by Representative Jay Inslee (D-WA) and Donald Manzullo (R-IL). This bill will set royalty rates that internet radio pays to the same reasonable level that satellite radio pays. Please call the House switchboard at (202) 224-3121 and ask to speak to your representative.  (find your representative).

From the press release from SaveNetRadio.org:

    The Internet Radio Equality Act would vacate the CRBââ,¬â,,¢s decision and set a 2006-2010 royalty rate at the same level currently paid by satellite radio services (7.5% of revenue.) The bill would also change the royalty rate-setting standard used in royalty arbitrations, so that the standards applying to webcasters would align with the standard that applies to satellite radio royalty arbitrations.
    ââ,¬Å"The illogical and unrealistic royalty rates set by the CRB have placed the future of an entire industry in jeopardy,ââ,¬Â stated Jake Ward [spokesman for SaveNetRadio.org]. ââ,¬Å"This bill is a critical step to preserve this vibrant and growing medium, and to develop a truly level playing field where webcasters can compete with satellite radio.

Source: http://somafm.com/blogs/rusty/2007/04/inslee-introduces-internet-radio.html

Just for info,

Quote SorceryKid @ Shoutcast forums:

I'm sorry for not replying sooner. I've been tied up with business obligations. I'll try to answer your question in simplest terms.

It is important to remember that for nearly 25 years, sound-recording copyright owners in the U.S. have been denied the exclusive right to public performance. When the Copyright Act underwent its modernization in 1976, the lobbying efforts of the recording industry could simply not overcome the political might of terrestrial radio broadcasters.

As a result AM and FM stations, as well as restaurants, nightclubs, theme parks, and so on were free to exploit sound-recordings in public performance -- royalty-free.

It was not until the passage of the DMCA in 1998 that record labels and recording artists could finally seek appropriate remuneration for the use of their creative works under statutory license.

Now, contrast this shortsighted mentality with many forward-thinking nations like Australia, United Kingdom, etc. who for decades (well before the popularization of the Web) already understood the importance of providing equal copyright protections in both musical-works and sound-recordings.

I personally do not entirely blame the Recording Industry Association of America for holding a grudge. Even despite its relative ubiquity, copyright law in the United States is still inadequate and in continual need of reform.

--Randall

You can read the topic in it's entirety HERE


And we did consider just populating our streams with unsigned bands.. But, this currently does not affect us, as we are UK based as are our servers.