Webcasters Want Royalty Reduction
Mom-and-pop Internet radio services from across the United States wrote to House Judiciary Chairman John Conyers and ranking member Lamar Smith urging them to extend small broadcaster protections, which could be included in a bill before their committee on Wednesday, to Web sites that offer music as well. "Small webcasters are the smallest of small, but our programming is the most innovative and our playlists the most diverse," they argued in a Tuesday letter. "Small webcasters play more independent music, more local artists, and more unusual genres than broadcast radio, satellite radio and cable radio combined!" they said.
To ensure that small AM and FM stations are not bankrupted by a proposed new fee, Conyers' legislation lets let those making less than $1.25 million annually pay only $5,000 in royalties. Additionally, he is expected to offer an amendment so that radio stations earning less than $500,000 will pay only $1,250 and stations earning less than $100,000 will pay only $500. By contrast, webcasters pointed out that their sector pays far higher rates. Those earning $1.25 million pay $150,000 in royalties; webcasters earning $500,000 pay $50,000 in royalties; and webcasters earning $100,000 pay $10,000 in royalties. Read more about Conyers' legislation here, here, and here.
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