Just found this article in my local paper this morning. It seems the government has mandated a per-song rate increase for internet broadcasters:
http://www.nj.com/news/ledger/index.ssf?/base/news-11/1173246434126790.xml&coll=1
We broadcast through Live365, and pay a monthly rate, as opposed to a per-song rate. Still, such large increases by the recording industry are bound to trickle down and be felt by the little guys.
Here is what the powers-that-be at Live365 had to say on the topic:
Despite all the arguments made by the Internet radio industry, e.g. Live365’s CEO Mark Lam’s testimony last April at a Senate Judiciary Committee hearing on digital radio urging the Committee to help create a level competitive playing field for broadcast, cable, satellite and Internet radio (go here for video and written versions of his testimony: http://www.digmedia.org/content/release.cfm?id=25&content=news), the Copyright Royalty Board (CRB) has reportedly adopted the new per performance royalty rates put forth by SoundExchange.
It was reported that the new per performance royalty rates for the years from 2006 through 2010 would be $0.0008, $0.0011, $0.0014, $0.0018, and $0.0019, respectively, representing an increase over the existing rate ($0.000762) of 5%, 44%, 84%, 136%, and 149%, respectively, and a year-over-year increase of 5%, 38%, 27%, 29%, and 6%, respectively.
This would undoubtedly impose a grave challenge to the development of Internet radio. From the moment the news broke—and even in the months leading up to the CRB's decision, Live365 has been proactively working on resolving any possible negative effects of the potential royalty rates change, on behalf of our broadcasters and listeners and in cooperation with other DiMA (the Digital Media Association) members and the Internet radio industry at large.
In the days and months to come, Live365 expects to take a series of measures to combat the challenges imposed by the new royalty rates. We will keep you posted of the progress. Before the CRB and Live365 make any formal announcements, however, we ask you to please stay calm and refrain from passing any false speculations and premature judgments.
As far as the X5000 broadcasting package is concerned, we haven’t heard anything about a possible raise in the Small Webcaster royalty minimum premium of $2000 per calendar year, although many believe the CRB may not adopt a new rate for Small Webcasters (although there is no guarantee at this time). Again, please don’t panic before anything is confirmed.
In the meantime, you may want to contact your local Congressmen and Congresswomen. Make your voice heard by the lawmakers on Capitol Hill.
_________________
Monty
Marketing Manager, Live365
I've been to
http://www.savenetradio.org and signed the petition, and I wrote to my Congressman. If you enjoy listening to Internet radio as it is right now, then I recommend you do the same. If Internet broadcasters will be expected to pay
twice what terrestrial (AM/FM) stations are required to pay, then there is little hope for the small broadcaster.
Thanks,
Lisa
--
Lisa Clarke
Have had your daily dose of Polka Dots?
