Government to Kill the Radio Star
Thursday, June 28th, 2007On Tuesday several online radio stations protested proposed royalty rate changes by the Copyright Royalty Board that could spell the end of the industry. The rates are expected due to become effective July 15th. Worst yet, the new rates will be retroactive to January 1, 2006.
Yahoo Music’s Ian C. Rogers wrote “… the new royalty rates are higher than the revenues anyone can hope to make from related advertising. In other words, we all lose money on Internet radio starting July 15th. Yahoo! has no intention of operating LAUNCHcast radio as a loss-leader. This senseless rate hike needs to be changed, or our business will have to.”
Several other webcasters have voiced similar opinions. If the proposed rates are not changed, free Internet radio may become a thing of the past.