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Smaller Internet Radio Stations Get Extension On Rate Increase

Posted by Molli Fire on Tuesday, 22May07

Hurray for the dedicated supporters of internet radio broadcasting!!! We have achieved at least a small victory today, and hopefully it will serve as precedent to achieve bigger victories in the near future!

The announcement came down the vine today that SoundExchange (who i thoroughly reported about here) has offered a reduced royalty rate to “smaller” webcasters. We can only hope that this will further translate into no royalty rate for those stations that are able to prove that they do not broadcast music that incurs any royalty at all. You may recall that previous decisions had included a $500 minimum fee for every station plus royalty fees even for strictly talk-based radio. The new decision states that smaller stations on the web will owe 10% of revenues up to $250K and 12% of revenues over $250K. For stations that already pay royalties and fully comply to this system, this will come as a great relief. However, the language of the press release leads one to think that this may be a temporary fix to give smaller net stations a chance to catch up before being hit with the original plan of increased royalty rates. Let’s not even get started on how the government considers this a “subsidy” to small webcasters to help them get their business built up enough to afford the big fees, rather than a free speech or freedom of access to non-commercial music. So, the struggle to keep internet radio accessible to all has not yet been won…

Listeners Can Save Internet Radio

Please read more about the new situation by checking these links as the story progresses:

LINKS

Radio And Internet Newsletter
Save Net Radio
Hypebot

PBS report on the dynamics of webcasting.

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