Posted on August 20, 2010, by mgeedey in threats to Internet Radio.

Just as we’ve all come to love Internet radio and struggle to imagine music before this came to be, a recent legislative decision could jeopardize the entire system. Traditionally, as payment for streaming music, Internet radio webcasters were required to pay an annual fee along with a certain percentage of profits. However, performers who are suffering from lost revenues have been pushing hard for a pay per performance fee. Before the change in legislation, money was paid to songwriters and performers received royalties, but rough times in the recording business are causing a push for this new system. What recording artists seem to forget is that it’s illegal downloads that are causing their wallets to shrink, not legal, license-holding radio stations. In fact, we’ve all seen better days. The new fee system requires a flat fee per song that is played. However, since this change in 2007, the rate has gone up every year. Read more!