A couple of years go I finally moved my small business from my garage to an office. I considered purchasing a radio but then opted for using Internet radio for my music. This has worked well, especially since none of the Southern California radio stations play anything I like. Internet radio provides choices that broadcast radio never will.
A pending change in the royalties may be the end of Internet radio.
"Let’s imagine a webcaster with an AVERAGE audience of 10,000 listeners
(obviously, listeners come and go, and no one listens 24 hours a day,
but we’re talking about an average number… so sometimes there’ll be
lots more than 10,000 folks listening, sometimes lots less… but for
math’s sake, let’s deal with the AVERAGE audience). Our webcaster plays
16 songs every hour, 24 hours a day, 365 days a year, to an audience
that averages out to be 10,000 people.
$0.0008 X 10,000 listeners X 16 songs/hr. = $128. It’ll cost our
imaginary webcaster $128 to play one hour of music for 10,000 people.
At the end of the day, that’s $3,072 ($128 X 24 hrs./day) — for just a
single day! After a week goes by, it’s $21,504 ($3,072 X 7 days/wk.).
And for all of 2006, this webcaster with a steady average audience of
10,000 listeners would owe $1,121,280!! (the $3,072 X 365 days/yr.)
That takes care of 2006. For 2007, the rate increases 37.5%! So, with
no audience growth, the cost of streaming music for the year would
increase to $1,541,760.
And the royalty rate goes up another 28% in 2008, and another 28% in
2009, topping out at a $.0019 per performance rate in 2010 (resulting
in a royalty obligation of $2,663,040 for that same audience averaging
10,000 listeners) for that year. I wish my boss gave me raises at those