# What's the future like for Internet radio? **URL:** \ **Category:** Great Debates\ **Created:** [July 16, 2007, 2:03pm UTC](https://boards.straightdope.com/t/whats-the-future-like-for-internet-radio/411972 "2007-07-16T14:03:46Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [July 16, 2007, 2:03pm UTC](https://boards.straightdope.com/t/whats-the-future-like-for-internet-radio/411972/1 "2007-07-16T14:03:46Z")
According to this article, Internet radio will soon be no more: [http://www.baltimoresun.com/business/bal-radio0716,0,4306738.story?coll=bal-business-headlines](http://www.baltimoresun.com/business/bal-radio0716,0,4306738.story?coll=bal-business-headlines) > [@](#): > > From the attic of his condo in Woodbridge, Va., the 38-year-old Web developer ran an Internet radio station that spun his beloved Christmas carols all year long. Then in March, a panel of federal judges sharply increased the royalty charges for playing music online. > > Since then, it’s been one long, silent night for Clark and his hundreds of listeners at [christmasmusic247.com](http://christmasmusic247.com). His site and hundreds of other free Internet radio stations already have shut down, and most others have said they will stop. The new rates became effective Sunday. > > \ > > Each month an estimated 72 million listeners tune in to thousands of Internet radio stations programmed by devotees of every musical genre and subgenre. > > Those stations often feature programming that’s like a party mix that can be shared with the world, including obscure and independent recordings never heard on the FM or even satellite airwaves. > > \ > > SoundExchange, the organization that collects and distributes Internet music royalties, said the new rates were fair and necessary to compensate performers and record companies for the use of their music. Negotiations are continuing between webcasters and SoundExchange, which has the ability to strike separate deals. > > In the meantime, the Internet is losing some of its musical variety… Basically, the once-affordable royalty payments have been legislated into “no way”, non-affordable payments. At least that’s what the small stations claim. So is this an example of greed or a reasonable adaptation to a new technology (the Internet)? What’s in the future for stations and listeners? ---
**Author:** ![Spectre\_of\_Pithecanthropus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spectre_of_pithecanthropus/32/12343_2.png) [@Spectre\_of\_Pithecanthropus](https://boards.straightdope.com/u/Spectre_of_Pithecanthropus)\ **Post date:** [July 16, 2007, 5:02pm UTC](https://boards.straightdope.com/t/whats-the-future-like-for-internet-radio/411972/2 "2007-07-16T17:02:28Z")
As a regular listener to KCRW, one of the largest webcasters, I am very concerned by this development. As I understand it, the royalties are in no way proportionate to the amount of revenue the station receives through grants and subscriptions, but are strictly based on the number of listeners. ---
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [July 16, 2007, 7:00pm UTC](https://boards.straightdope.com/t/whats-the-future-like-for-internet-radio/411972/3 "2007-07-16T19:00:55Z")
[QUOTE=Spectre of Pithecanthropus] As I understand it, the royalties are in no way proportionate to the amount of revenue the station receives through grants and subscriptions, but are strictly based on the number of listeners. [/QUOTE] There’s some logic behind that. The more listeners a station has, the more advertising it can attract and at the best prices. Same with a magazine; the circulation is a major factor in determining the ad costs. I guess I’m wondering why, with an explosion of stations thru the Internet, all of which pay SOME royalties, right? – why this hasn’t been enough up to now. Doesn’t it seem like Sound Exchange is killing off the goose that laid the golden egg? ---
**Author:** ![Baron\_Greenback](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/baron_greenback/32/48_2.png) [@Baron\_Greenback](https://boards.straightdope.com/u/Baron_Greenback)\ **Post date:** [July 16, 2007, 10:16pm UTC](https://boards.straightdope.com/t/whats-the-future-like-for-internet-radio/411972/4 "2007-07-16T22:16:44Z")
SoundExchange have decided not to implement the new rates right away [link](http://www.wired.com/entertainment/music/news/2007/07/webcasters_face_music) , to allow for further negotiations. ---
**Author:** ![Baron\_Greenback](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/baron_greenback/32/48_2.png) [@Baron\_Greenback](https://boards.straightdope.com/u/Baron_Greenback)\ **Post date:** [July 16, 2007, 10:26pm UTC](https://boards.straightdope.com/t/whats-the-future-like-for-internet-radio/411972/5 "2007-07-16T22:26:31Z")
[QUOTE=Musicat] I guess I’m wondering why, with an explosion of stations thru the Internet, all of which pay SOME royalties, right? – why this hasn’t been enough up to now. Doesn’t it seem like Sound Exchange is killing off the goose that laid the golden egg? [/QUOTE] It does seem perverse. Another odd thing is that Sound Exchange will be collecting royalties for all music played, even for artists not affiliated to the RIAA and those offering their music for free. An individual broadcaster has the right to negotiate individual rates with artists and labels, but this is beyond most of the small outfits. If one were to concoct a scheme in order to deliberately put the internet broadcasters out of business, it would look much like this one.