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Old 06-26-2007, 07:28 PM   #4
CHEAPSOFTOEMONLINE

Join Date
Oct 2005
Posts
401
Senior Member
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Originally posted by Oerdin
At least in the US. The Republican Controlled Congress passed a bill last year which requires internet radio stations to pay 800%-1200% higher royalty fees then satellite radio basically meaning that most internet radio stations based out of the US will be going belly up in just three weeks. The sad fact is this is a direct result of lobbying from the old fashioned terrestrial radio stations and satellite radio companies who want to use regulations to shut down competition from internet radio sites which they have been unable to beat in the open market. This type of protectionism is bad for America because every other country will continue to develop internet radio but all the internet radio stations in the US will be forced into bankruptcy. The end result is people will still listen to internet radio but they will not be American companies that they listen to. This just doesn't make sense for the country as a whole.

Also traditional radio broadcasters aren't even legally required to pay royalties to artists because Congress has declared that radio is such a promotional value that radio stations don't need to pay royalty rates. Listen to this broadcast if you want to learn the details:

http://somafm.com/indiepop.pls

If you are an American Citizen and you would like to help end this unfair practice and prevent the bankruptcy of most of America's internet radio stations then go to www.savenetradio.org and send a letter to your Congressman. When the government here tried to be that restrictive with regards to radio stations the broadcasters just went offshore and flouted the rules. Eventually things changed.
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