Radio Webcasters Nearing to an End

Radio Webcasters Nearing to an End

With the cost of royalties the radio webcasters are paying, it’s possible that companies like Pandora will soon be out of business. Nearly 70% of their revenue is paid for royalties alone and their net revenue could hardly keep up with their expenses. 
The Copyright Royalty Board set new rates for webcasting for the License Period 2006-2010. The royalty rates this year are even higher than the pre-existing rates which raised concerns among webcasters. The rate increase was implemented mainly because of the pressure put on by the entertainment industry. Negotiations are still in progress, but things don’t look too good for the webcasters. If both parties won’t be able to meet halfway, internet radio will most likely be just another part of internet history.