Radioactive: Webcast Royalty Rates Redux

This past week, the Copyright Royalty Board (CRB) announced its decision on internet radio royalty rates. In doing so, it chose to reject all arguments made by webcasters large and small & instead decided to adopt a 'per play' rate proposal presented by Sound Exchange (a digital music collection organization that the RIAA created during the last decade). There's a well-written overview on rate specifics (retroactive to the beginning of 2006) and relevant commentary here; worthy of review.

Essentially the decision means that internet radio webcasters will have to pay for every song streamed through their servers. Webcasters large and small will feel the bite; the rates are not insignificant and they increase dramatically over the next couple of years. Ramifications of this decision are dire for internet radio should it take effect. Many of the best legitimate US webcast radio providers will be shut down as they simply won't be able to afford to pay these rates retroactively much less in future.

This is not the first time we've been down this path -- similar rate structures were proposed 5 years ago, but fell through. Webcasters of all sizes are rallying to defeat this current 'decision' before its too late.