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Specifically, from 2006 to 2008, Web radio music royalty rates will double to 0.14 every time a song is streamed to a listener.For a Webcaster playing 14 songs an hour, that will come to 2 per listener per hour in 2008."It's going to cause confusion, concern, and pulling back." Proposed Net Radio Royalties to Exceed .3 Billion by 2008 If newly proposed rates for Internet radio broadcast royalties are ratified, annual fees for all station owners are projected to reach .3 billion by 2008, more than four times that of terrestrial radio broadcasters."It's just sad for Internet radio because it has such high potential," says Paul Palumbo, founder of consultancy Accu Stream i Media Research.
A Di MA survey of 1,008 online music radio listeners and music services subscribers published in January found that nearly half are spending more than 0 per year on music, and nearly 30% are spending more than 0.Some Webcasters hope Congress will get involved and establish different royalty rates for small broadcasters.The now-expired Small Webcaster Settlement Act of 2002 stipulated that certain noncommercial Web radio stations didn't need to pay royalties at all, while other small businesses only paid a percentage of their expenses or sales.Before the Internet, an average consumer only bought about 0 worth of CDs a year.Negotiations over fees could take months, however, while the impact on the Web radio industry is expected to kick in almost immediately.