[Dixielandjazz] New royalties for Internet radio

[David Richoux]

A fwd from another KFJC member - I am not sure of this interpretation  
of the ruling (if it is based on total actual listeners, an average,  
or what?) but if it as stated below, pretty rough! I also do not know  
the international aspects of this ruling.

Dave Richoux

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On Friday March 2nd 2007, the Copyright Royalty Board announced new  
royalty rates for Internet Radio stations. The rates are retroactive  
to January of 2006.

Royalties are fees paid by  internet broadcasters for the right to  
transmit recorded music to you over the internet.

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.

This amount of money is beyond the resources of all but the very  
wealthiest of corporations. Many of the internet radio stations you  
listen to  are run by enthusiasts and hobbyists. These small stations  
are the ones bringing new music, and old favorites to you every day.  
Music you can't hear on corporate-owned terrestrial stations.

Could this be the day the music died?
What can you do

If you enjoy internet radio, you need to make your feelings known  
right now to your representatives in the Congress and Senate. Write  
to them and ask them to help repeal the decision of March 2nd by the  
Copyright Royalty Board. It only takes a couple of minutes.

* Congress: http://www.house.gov/writerep/
* Senate: http://www.senate.gov/general/contact_information/ 
senators_cfm.cfm

More background on this decision

* http://www.digmedia.org/docs/Press%20Release%2010-31-05.pdf
* http://www.digmedia.org/docs/CRB%20Arbitration%20FAQ.pdf
* http://www.kurthanson.com/archive/news/030207/index.shtml
* Broadcastlawblog http://www.savenetradio.org/archive.htm