Friday, April 27, 2007

May 15, 2007 -- The day internet radio DIES

I've dabbled in internet radio for a little over three years now. My audience has never been huge, just myself and a small group of friends tuning in now and again. I've spent many hours putting together an interactive web interface, and have always had dreams of launching a full-fledged station, but could never justify all the costs -- not the least of which was the licensing required to broadcast copyrighted works.

The blanket licenses that have been available through such services as Loudcity, Live365, SWCast, etc. for the last several years have been reasonable, but with the recent ruling by the Copyright Royalty Board, not only are my dreams of starting up a full-fledged station likely to be crushed forever, but many existing stations (mainly hobby stations) also stand to be forced into shutting down their streams.

The proposed rate increases would not only drive up licensing costs to the point of exceeding 100% of the typical internet radio station revenues, but also seeks to collect payments retroactively, at increased rates, going back several years. How can anyone expect to stay in business when licensing fees alone exceed revenues??? It's absurd. And that's only one of many expenses that need to be covered to run a station.

Will these increased rates put every station out of business? No. But, the rates will certainly make the hobby station essentially extinct. The reality is most hobby stations have had to scramble just to cover their costs under the previous fee schedule, relying on cut-throat advertising (on-air and banner) and listener donations to survive. If the proposed fee schedule goes into affect, it will be a major blow to internet radio.



For more information on the CRB ruling, please visit the following sites:

SaveNetRadio Coalition
Small Webcaster Community Iniatitive
International Webcasting Coalition
Save Webcasting dot org

3 comments:

Mel said...

Welcome to blogland! I saw your comment on Anna's blog and thought I'd check ya out. If you need more blogs to waste your time, feel free to link up to mine and/or Jerry's!

mel-pasker.blogspot.com
blog.jerry.org

Later Gator!

Mel said...

Heh...nevermind...I see you already read Jerry's. I'm a dork.

Chad said...

Hey Mel!

Yeah, I stop by Jerry's blog from time to time for a good read. He's always got some interesting topics.

I wasn't aware you had a blog, but will certainly stop by frequently from now on.

BTW...thanks for making it to my surprise birthday party. It was good to see you guys. Say hi to Jerry for me.