Changes to Royalty Rules to Kill Online Radio?

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The Radio and Internet Newsletter features a breakdown of Friday's decision by the CRB.

The Copyright Royalty Board (CRB) has announced its decision on Internet radio royalty rates, rejecting all of the arguments made by Webcasters and instead adopting the "per play" rate proposal put forth by SoundExchange(a digital music fee collection body created by the RIAA).

more from SaveNetRadio:

The new rates are far higher than any industry experts expected. In fact, if they remain unchanged, bankruptcy looms for many online radio stations.

The new rates essentially levy a tax of $0.0011 per performance. Now, that doesn't sound bad does it. But consider this. Each hour, the average radio station plays 16 songs. So that's about 1.76c per hour, per listener. A station with 500 listener average would be hit with fees of $211 per day, $6,336 a month or $76,000 a year.


It will be a pity to see

It will be a pity to see this kill off the alternative radio stations. My favourite is A.N.E.T. Broadcasting Blues from the South Pole...classic.

Hopefully they're outside RIAA jurisdiction :)

Actually - just read on the ANET site, they have individual agreements with the artists to play their music, outside the record labels. Maybe this is the way forward, RIAA will cut off the flow to Britney Spears and pals, and net radio can push the independent artists? Wouldn't be the first time they have shot themselves in the foot.

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