Gordo has an important post about how
the mafia the RIAA is using the Copyright Royalty Board to put independent music stations out of business so that the only music available will be this produced by an RIAA record label. The CRB has adopted the RIAA’s suggested royalty levels, 0.08 cents per listener per song effective retroactively from 2006, which often works out to a higher number than a webcasting station’s total income. Worse, this figure is slated to rise sharply, reaching 0.19 by 2010.
Radio Paradise‘s Bill Goldsmith notes, “This royalty structure would wipe out an entire class of business: Small independent webcasters such as myself & my wife, who operate Radio Paradise. Our obligation under this rate structure would be equal to over 125% of our total income. There is no practical way for us to increase our income so dramatically as to render that affordable.”
And Radio Paradise is perhaps the most-successful webcaster in its class! For most operators, this rate looks as if it would be >150-200% of total revenues.