Internet radio
Overview
Internet radio refers to the practice of broadcasting radio-like content over the Internet (more technically: making streaming audio content available on the Internet for multiple listeners who need not "log in" or otherwise identify themselves). The practice of broadcasting content over the Internet is referred to as webcasting, or just 'casting. (The term "netcasting" is usually used in reference to broadcasting within a private (e.g. corporate) computer network.)
It is a minor issue in general because of disagreements over how to license content for net 'casting; these were more or less resolved by fiat when the RIAA posted a set of rules and rates for webcasting; although not everyone was happy with the rules, webcasters generally complied and the issue went on the back burner.
2007-03-02 New US Rules
On March 2, 2007, however, the United States government, through the Copyright Royalty Board (CRB), announced a new set of higher rates that are retroactive to the previous year (2006) and which escalate steeply (more than doubling) up through 2010.
Given the rates currently paid for advertising on webcasts and the low demand for advertising airtime, these new rates make webcasting essentially commercially non-viable.
Furthermore, the new regulations require webcasters to pay these rates even if they only broadcast content whose license allows free broadcasting.
Links
- 2007-03-12 New Music Royalty Rates May Shut Down Internet Radio
- SaveTheStreams.org: "Internet radio may be driven out of business within weeks by a Copyright Royalty Board decision that gives record companies a royalty rate that exceeds 100% of most webcasters' total revenues..."