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Internet Radio Isn't Dead Yet

by Tim Stevens on July 2, 2007 at 03:31 PM

Internet Radio Offered Olive BranchFacing extinction thanks to new (much higher) per-track and per-user fees being levied on them by the RIAA come July 15, thousands of Internet radio stations last week held a "Day of Silence" in which they didn't broadcast a single sound, giving listeners a preview of what to expect after the financial bloodbath. Despite the silence, it seems people were listening. SoundExchange, the royalty-collection arm of the RIAA, has offered a $2,500 per month cap on royalty payments per channel. The earlier fee structure was set at $500 per month per stream, on top of per-song and even per-user fees. For services such as Pandora and Live365, which operate thousands of streams, the fees originally proposed by SoundExchange spelled certain death.

The catch is that this cap is only temporary until 2008. The Digital Music Association, which represents the Internet radio stations, has agreed to the new proposal, but only if it is extended until at least 2010. No word yet on whether the provision will be accepted by SoundExchange, but it does seem that there is still some hope left for Internet radio.

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Tags: Internet radio, InternetRadio, RIAA, SoundExchange

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