Tuesday, March 6, 2007

Say goodbye to Internet Radio

If you like internet radio, you better get your listen on while it still exists. As reported by the Radio And Internet Newsletter the royalty rates have changed. Instead of a percentage of total revenue, it is now based on a per listener, per play rate. It's a similar issue that was being discussed back in 2002. But the difference here, is that it's official. (Last time it was only in discussion, not law.) Since the rate decision is so large, (and retroactive through 2006) that many broadcasters will have to pay upwards of 150% of their total revenue. Obviously this isn't going to work, & therefore many will have to close their doors. I think the consensus is that pandora.com is so large, it might be the first on the chopping block. This is a dark day in music.

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