Internet radio: dead or alive in 14 days
Monday, April 30th, 2007If you didn’t know already the fate of internet radio is going to be decided on May 15th. A negative ruling on the matter may mean that great sites like pandora.com will no longer be able to operate because a new adjustment in royalty rates will force them into bankruptsy. A coalition of leading internet radio advocates have built a web site called savenetradio.org to provide a status of the situation as well as what action people can take to protest. Here a synopsis of the situation:
The Library of Congress judges that oversee copyright law’s statutory licenses decided that May 15, 2007 will be the date royalty fees owed by Web radio operators will be drasitcally increased. The Copyright Royalty Board changed rates from a percentage of revenue to a per-song, per-listener fee—effectively hiking the rates between 300 and 1,200 percent, according to a lawyer representing a group of Webcasters.
The president of Pandora and co founder of savenetradio.org, Tim Westergren, took me out to lunch about a year ago. You can read about our encounter on the Pandora blog …scroll to the bottom of the page to see “update from Portland.”


