Internet Radio's Reaction to New Royalties in the News..

"Do you really think your station is in trouble?"

That's a question that I, along with probably thousands of other webcasters, keep asking ourselves - when others aren't asking us the same question.

Without knowing ALL the details of the effect the new rates will have on streaming providers such as LoudCity, Pandora, Live365 and others, my answer is, "Yes, I believe it is."

Why?

Well, I wrote a from-the-heart letter to Florida Sen. Mel Martinez. In response, I received a
nice..form letter??!! So, he has probably received other letters on the same topic. He's received enough to have a form letter written..probably by an office worker.

Well, the webcasters are battling back. Check out this story that was published this week by CNNMoney

Live365 broadcaster Dianne Lockhart owns and operates two stations, Meander Comedy Radio and Solace Radio. She has written an intelligent, well-researched press release that you can
read HERE

RocklandUSA's owner, Craig L., has indicated that the amounts his stations could owe are
"hundreds of thousands of dollars." He stands to lose everything he owns if the new rates are allowed to stand.

I am nowhere near the TLH of these stations, but let's crunch some numbers.

For 2006 and the first two months of 2007, WJJD paid approximately $447 in fees to Live365.
If you add the new $500 minimum, that brings it up to $947.

WJJD income: $312.00
Less fees: 947.00
______________________
Loss: -635.00

This shows you the amount we would need to broadcast just for a personal package that is not allowed to sell audio ads in its stream. Are listeners really going to donate $78 a month just to hear my AM station quality 8 kbps stream? Upgrading to the pro package,
provided Live365 survives through all of this, will cost more, although it is possible to run your own ads and promotions.

It's almost ironic, because I was heavily pitched the X5000 station back in the fall of 2005. I began raising money for it, but only received $800 out of the necessary $2000. Due to illness in the family, I didn't have the time needed to research the X5000 to my satisfaction, so I passed on it. Which now appears to be one of the wisest webcasting decisions I've made.

The $800 bought my short-lived MUSIC OF NEW LIFE station, which was on Live365 last year from February to November. After the initial funding, nothing else ever came in, and that station was more expensive to operate than WJJD, with its higher quality stream, additional DSL line, technical expenses and computer equipment. MUSIC OF NEW LIFE ceased broadcasting around November 4, primarily because no one was financially supporting it.

I believe webcasting as a whole is in trouble, and right now I'd advise those getting in, don't spend any money you can't afford to lose.

I'm hoping our listeners and friends understand how serious this is.

If not, things could get mighty quiet on our stream..