This issue has just come to my attention in the last few days. To catch those of you who haven't been paying attention up, the Copyright Royalty Board has increased the rates for Internet Radio sites, all of them. In case you didn't know, those songs you stream for free from sites such as Pandora cost money for the site for every single play. In fact, many companies are only ad-supported and don't even bring in much money at all; just enough for hosting. The Copyright Royalty Board is tripling the fees that the sites must pay, and this amount is retroactive to January 1, 2006. This means that the companies must pay the readjusted tripled rate for all of the songs streamed since then. As soon as June 15 hits, many companies will be instantly bankrupt. At the moment, we don't know which companies will go under. As a rule of thumb, you can assume that the smaller companies that don't have a subscription service definitely won't be around after the 15th.Spoiler for The short version:
Internet streaming allows many undiscovered bands to gain recognition online. Many bands will now lose this mode of discovery, and not make it to the big time.
The founder of Pandora is on DL.TV Episode 158, and gives an insider's opinion on the legislation. Watch the last ten minutes or so of the podcast.
Action must be taken against this attempt to milk all of the money out of the Internet Radio industry. Visit Savenetradio.org to find out what to do to stop this. It doesn't even take much. Click here to send a message to your state representative. Fill in your name and address, and it will send an auto-generated message to your state rep. Tell your friends, neighbors, family, grandparents, teachers, anybody you know to do this. Additionally, copy and paste this bbcode into your sig (remove the * before the url and color codes):
Yes, I wrote this myself. No, I'm not affiliated with web radio in any way, shape, or form, but believe in the cause. Thanks for supporting them.Code:[*url=http://www.savenetradio.org/][*color=red]Net Radio DIES June 15, 2007 - Take Action Here[/color][/url]