Web Radio Day Of Silence Today
June 26, 2007 | by Christopher Nickson
Many web radio broadcasters are having a day of silence to protest new royalty rates that could cost them thousands each year.
If you’re tuning into web radio today and can’t find anything to listen to, don’t be surprised. Many web radio broadcasters are holding a day of silence to protest the hike in royalty payments for music played online.
The protest is being organized by the SaveNetRadio Coalition, which includes some major players like RealNetworks and Viacom, and hopes to raise awareness of the royalty issue.
As things stand, new royalty rates will take effect July 15. According to the protesters, they could cost web broadcasters an extra $1 billion in administration fees. Rates will rise by 300% over current fees, and the plans include proposals to charge royalties every time an online listener hears a song.
“These proposals will bankrupt the industry,” claimed Jake Ward, spokesman for the SaveNetRadio Coalition.
The Copyright Royalty Board made the decision to increase fees, but objections have come from across the spectrum of broadcasters. The new fees will apply until 2010, increasing year by year, with charges being retrospective to 2006. In addition to a $500 for every channel a broadcaster owns, there will be a flat for per-song, per-user. This could cost major broadcasters thousands per year.
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M Stratton on Jun 26th, 2007 at 7:06 AM:
I BUY my music based on the artists I discover from free or modest subscription based webcasting... raising royalties from streaming will only cause me to buy LESS music from these same artists because i will never have a chance to discover them from streaming webbased broadcasters who are forced under by the royalties.