Internet Radio

One of the best things about the internet is the way we can listen to any musical genre . Net radio allows us to enjoy and discover new music in a way that corporate-controlled radio never will.

However, the Copyright Royalty Board, in its infinite wisdom, has decided to dramatically increase the royalties net radio sites must pay to SoundExchange. The net result will be more use of peer-to-peer networks, and less “legal” access to new music. Though this increase purports to help compensate artists, that is simply not the case.

In March, the CRB increased the royalty rates to 7/100 of a penny per user who listened to each song. Bafflingly, these rate increases are retroactive to 2006.

This is a dramatic increase from the small hourly rate required previously. Setting aside how exactly we can determine listenership, this increase is sure to shut down many streaming radio stations. It seems that the increase money which will make it to artist will only be hundreds of dollars per year, hardly worth the price of shutting down the streaming stations.

Congress can still step in and prevent or amend the increase. To learn more visit savenetradio.org.

Questions or Comments? Email me at derek.fincham@gmail.com

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