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Internet radio listeners will tune in to the sound of silence on
Tuesday as webcasters protest a sharp rise in royalty fees that
critics say will force thousands of online stations to close.
The SaveNetRadio Coalition said thousands of web-based broadcasters
would participate in the "National Day of Silence,"
following a ruling that ordered a severe hike in royalty fees from
July 15.
"The arbitrary and drastic rate increases ... threaten the very
livelihood of thousands of webcasters and their millions of
listeners throughout the country," said Jake Ward, a spokesman
for the SaveNetRadio Coalition.
The protest comes after the Copyright Royalty Board voted in March
to increase royalty fees played by web radio stations from 0.007
cents per song, per listener, to 0.019 cents, a hike of nearly 300
percent.
Additional administrative costs would also hit radio stations hard,
with the SaveNetRadio group estimating the losses at tens of
millions of dollars.
The rate increase is also retroactive to early 2006, meaning online
broadcasters will have to pay back fees for all songs played in the
past 12 months when the new rates take effect.
Ward told AFP that around 14,000 Internet radio stations would
participate in Tuesday's day of silence.
If enforced, the new royalty rates would lead to the closure of
radio stations and would deny smaller, lesser-known artists an
outlet to build grass-roots support, Ward said.
"Without a doubt, most Internet radio services will go bankrupt
and cease webcasting if this royalty rate is not reversed,"
Ward said.
A statement from the coalition said rates were so high that even big
Internet-only radio services -- including Yahoo and MTV -- would
suffer.
The shutdown will hit millions of Internet listeners. Among
companies participating are Yahoo, which will silence around 200
music channels and Live365, which has around 10,000 music streams.
Several smaller webcasters are also taking part. Visitors to one
site will be diverted to pages listing contact information for
Congressional lawmakers, who are being urged to take up the cause.
Justin Savage, the founder of LoudCity, an Internet music site that
hosts more than 500 stations, told the Boston Globe's online edition
he hoped the day of silence would draw attention to the issue.
"I just hope that it creates one final push of momentum ... and
it really lets Congress know that it's a dire situation," said
Savage.
However, the significance of the lobbying effort has been played
down by SoundExchange, the music industry group responsible for
collecting Internet royalties.
SoundExchange officials have said major online content providers
like Yahoo and Time Warner would be able to afford the new rates and
that proposals for a cheaper rate schedule for smaller broadcasters
had been tabled.
--AFP
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