Web Broadcasters Plan Protests Over Royalties

WEB BROADCASTERS PLAN PROTESTS OVER ROYALTIES
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride@wsj.com]
Music fans tuning into their favorite Internet radio stations next Tuesday might hear nothing but silence. Web broadcasters are planning to turn off their music for the day to protest higher statutory royalty rates payable to artists. Some of the largest services, including Live 365 Inc., Pandora Media Inc. and Yahoo Inc.'s Yahoo Music, are participating in the blackout, which organizer Kurt Hanson of online-radio service AccuRadio has dubbed "Day of Silence." Many online broadcasters say the new rate structure -- which will cost some of them several times their current total revenue -- will put them out of business. The new rates, announced in March, start at 0.08 cent per song, per play, per listener, retroactively starting in 2006, and rise to 0.19 cent by 2010. The fees start coming due July 15.
http://online.wsj.com/article/SB118237834051942601.html?mod=todays_us_ma...
(requires subscription)