Internet Broadcasting under pressure

Have you heard of  Internet Radio Equality Act (IREA)? This addition is about the level the playing field for internet radio broadcasters, like Pandora and satellite broadcastes like XM and Sirius.

Recent blog by Michael Robinson, creator of MP3.com guesstimates that the average royalty increase is in the 30% of what the radios are paying now. Please checked out Michael's full blog entry here.

From what I understand the major issue coming from the act is that there is an unavoidable per user cost, which is going to be pretty hard to digest for many radios who have users playing music in the background and constantly skipping to next. Thus unless the act is revisioned we are about to see either much more advertisements on our radio streams or some stations going silent.

 

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