There you have it, folks. Unless something is done to change this at the last minute, May 15th is the day you'll likely hear thousands of internet radio streams go off the air.Internet radio broadcasters were dealt another blow late Monday, when the U.S. Copyright Royalty Board upheld its decision to raise the level of royalty fees. The suggested new rates could potentially be high enough to put the majority of Webcasters out of business, though the CRB said that the appeals filed had not "made a sufficient showing of new evidence or clear error or manifest injustice that would warrant rehearing."
Also in the CRB ruling, the board opted not to postpone the May 15 deadline that would begin the new rates. It also clarified how royalties would be calculated for 2006 and 2007, allowing the use of estimated ATH (Aggregate Tuning Hours), but just as a "transitional period." The board also noted that the new rates would also apply to music streaming onto mobile devices.
In an encouraging sign, a new group has popped up to fight this. I am joining to help and I hope that you will, too:
On the other hand, the new coalition SaveNetRadio has launched www.SaveNetRadio.org, which is made up of representatives from Live365, Pandora and other online broadcasters. Spokesperson Jake Webb said in a statement, "The CRB's ill informed decision to increase royalty fees to this unjustifiable level will quite simply bankrupt most Webcasters and destroy Internet radio. Radio on the Internet is not a passing fad or for a niche audience. It is an enormously popular medium that offers unprecedented diversity for its more than 70 million listeners and for artists. Particularly for independent artists, Internet radio has the ability to reach millions of fans across the country who would otherwise never hear their music. Net radio has changed the way people listen to, buy, promote and market music and we cannot afford to let it die."
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