Copyright Royalty Board sets webcast royalty rates for 2006-2010
“The U.S. Copyright Royalty Board set new royalty rates for webcasters operating non-interactive radio stations, which will increase annually through 2010 and require Web radio stations to pay for each song streamed to each user. The rates set by the CRB are in line with those suggested by SoundExchange. Critics of the new royalty rates say that they could be equal to or greater than the total revenues generated by many webcasters, and end up forcing them offline. The Radio and Internet Newsletter (RAIN) estimated the rate for an average station that plays 16 songs per hour at 1.28 cents per listener hour, while such a station might generate total revenues of 1.0 to 1.2 cents per listener hour, when estimated ad revenue is factored.”
[Source: Digital Media Wire]