Internet Radio Becoming Unaffordable

This means, that performers and recording labels will greatly benefit from their music broadcasted.

But on the other hand, the most of webcasters will be unable to afford them play music. Newly established royalty payments will cost them much more than their entire revenue.

The new royalty payments are scheduled for July 15, and this day will become the last one for most of the small webcasters.

Since 1995 all webcasters, satellite and cable broadcasters are under the law to pay for each performance and royalty payments. In 2006 the per-song rate was 0.08 cents, but now it is going to rise to 0.19 cents. Besides, each internet radio must pay $500 for any single web channel.

Previously online music providers were paying royalty fees according to the number of songs webcasted. Some of the radios were paying the 12 percent of their annual revenue.

But with new royalty payments most of the webcasters will have to pay much more then the money they earn. Only a few radios will still keep playing music, but in this case they will be limited in their music catalog.

Radio fans will be very disappointed with the limited choice of online music. The new royalty fees will definitely end up with internet radios. HULIQ