Kyle SGMS used our newssubmit to tell us about an article on CNN about royalities webcasters will have to pay. Per 1000 listeners they will have to come up with $1.40 per song and for most small webcasters this is unacceptable.
On the other hand, the record labels and artists think the fee is too low, and is not based on the right revenue model:
Internet radio is becoming more popular at offices and homes as people get high-speed computer connections. It's expected to move more into the mainstream as wireless devices proliferate, allowing listeners to tune in while walking or driving. |
At issue is a decision expected Tuesday by the United States Copyright Office on whether to accept, reject or modify royalty rates for Internet-only broadcasters. The Copyright Arbitration Royalty Panel (CARP) has set the rates for Internet-only broadcasters at $1.40 per song heard by 1,000 listeners -- retroactive to 1998.
No one is happy with that number, Senate Judiciary Chairman Patrick Leahy said.
"The recording industry and artist representatives feel that the royalty rate, which is based on the number of performances and listeners, rather than on a percentage of revenue model, is too low," said Leahy, a Democrat of Vermont.
However, "Many of the webcasters have declared that this per-performance approach, and the rate attached to it, will bankrupt the small operations and drain the large ones," he added.
I think this will be cause of a lot of new pirates: pirate radio stations on the internet. Until then I'm still happy listening to PureDJ.com, my favorite webradio !
Source: CNN.com
