Internet radio may be a thing of the past after May 15,when steep new fees will begin to be imposed upon Internet radio stations. Kurt Hanson, CEO of AccuRadio.com, has indicated that the sharply increased royalty fees would raise their royalty payments from about $48,000 to $600,000 - 150% of their total revenues. In addition, the fees increase annually through 2010, and are even imposed retroactively for 2006. If the decision stands, Hanson said that it is "possibly fatal for Internet radio."
One would think that even artists and copyright holders would not want fees so high that there are no stations left to pay them. However, I suspect that it has more to do with the ongoing battle for greater control of content. The end game is to completely control when and how and where content is used, and to license it indefinitely at the highest possible prices. Without a big fight from the general public, special interests will rule the day.
And it's not just about standard Internet radio streams. There are other new services like Pandora.com which provide interesting customized listening experiences that are being applauded by more and more listeners. Without free Internet radio, we are left to the mercy of paid online radio services by subscription, and with less competition it's pretty clear what will happen to those prices.
So has everyone already given up? Not yet. "A campaign called SaveNetRadio.org has now been set up to put pressure on Congress to resolve the problem and create an environment where Internet radio, and the millions of artists it features, can continue to grow for generations to come.'" And there have been no shortages of industries saying they will die if a certain piece of legislation is enacted. Somehow, entrepreneurs can be amazingly innovative and creative when it comes to survival instincts. We can only hope that Internet radio finds a way to live on.
From
BBC News.