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Web Radio Prepares for the Worst

September 2nd, 2007

Even after compromises from SoundExchange and the CRB, web radio broadcasters are not optimistic about the future

The U.S. Copyright Royalty Board’s new rates “would bankrupt us,” says Tim Westergren of Pandora, echoing a sentiment reflected widely by the webcaster community. Spurred by SoundExchange’s efforts to raise the cost of broadcasting music on the web to what is widely believed to be unreasonable levels, webcasters everywhere are vigorously fighting what may very well be their end.

In a pair of interviews with DailyTech, Proton Radio’s Jason Wohlstadter and Pandora’s Tim Westergren shared their thoughts on what SoundExchange’s revised royalties plan means to them and their stations. The CRB’s rates are “disruptive for everybody, rightsholders included: even if you increase your rates, and if it puts those rate-paying stations out of business, then you’re going to get nothing. These rates [don’t rely on the] economics of web radio,” says Westergren, “so, I think it’s a terrible ruling and one that needs to be fixed.”
http://www.dailytech.com


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