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Is Web Radio Really in Danger?

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Is internet radio really a threatening development that broadcast radio would like to drive out of business, or is the outcry over royalty rate increases merely a blow to small operations that are the equivalent of “pirate” radio stations? There are certainly internet based streaming music services that have a business model that allows them to take in enough revenue to cover costs, including royalty costs. Maybe the internet radio services that are in danger of shutting down are simply those that don’t know how, or don’t want, to get paid for their service.

SoundExchange, the company that collects and pays out royalties to performers for digital use of their recordings, has a FAQ that addresses some of these issues.

Personally, I think the real problem in all this mess is that broadcast radio and internet radio are treated differently. Either all pay, or none pay.


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