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Web Radio: The End Is Near?

Posted on 4.15.2007

Interesting article from the Associated Press this morning about how a recent ruling by a panel of copyright judges could put the squeeze on the revenue of Web radio broadcasters, potentially forcing them out of business. The ruling came from a panel of copyright judges on March 2 after webcasters and SoundExchange, a group that collects royalties on behalf of artists and record labels, couldn't reach an agreement on a new royalty structure after a previous set of agreements expired at the end of 2005. Besides a group of small webcasters, a coalition of Web companies including Yahoo Inc. also objected, as did public and other radio stations that would be covered by the new rates. The royalties in question only apply to digital broadcasts of music, such as over the Internet. If a traditional radio station streams music from its Web site, it must pay the online rate in addition to a royalty paid to music composers.

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