On June 26th, internet radio observed a day of silence in a play to make listeners aware of the threat of increased royalty fees. Unfortunately, whether or not people became more aware hasn’t made a difference yet, because as of this Sunday, online radio stations (Pandora, Rhapsody, Live365 et al) will be forced to pay royalties that are not only much higher than what radio stations on the airwaves pay, but will also have to pay back royalties for every song played in 2006.
The result? Many online radio stations are being forced to shut down. Especially the small, independent ones.
What can we do about it? I’m not sure, sadly. For now, I hope people will pay attention to this issue, and see what develops. SoundExchange, who represents the artists and labels, claims that everyone involved in making/producing the music is just trying to get paid what is due to them. A long, personal history of hating the music industry (because I love the music), makes me incredibly skeptical.
Happily (for me), Pandora says that it will stay on(line) the air. For now.