On July 15, 2007, all Internet radio broadcasters will be required to pay a per-song-listened royalty fee, as opposed to the current percentage-of-earnings fee.
Fast Facts:
- Approx. 70 million Americans listen to internet radio.
- Terrestrial radio (AM and FM) is immune from the royalty increase.
- If enacted on July 15, all royalties will be due retroactive to the beginning of 2007.
- Many internet radio broadcasters claim they will be forced to close down if the new royalty rates go into effect.
- The Radio Equality Act is pending legislation that would set the internet royalty rate equivalent to that of satellite radio, 7.5% of revenue, not per-song-listened.
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