Paul's Profile

Member since March 6, 2007

  • Name

    Paul Maloney

  • Location:

    United States of America

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  1. Comment - Record Industry Proposes Huge Streaming Royalty Fees

    (Mar 6, 2007 - 8:44 PM)

    SoundExchange fees for webcasters are nothing new... but what's new are these particular royalty rates.

    In 2002, small independent webcasters were allowed to pay a percentage-of-revenue fee to save them from fees that would certainly bankrupt them. But as of the end of 2005, this is no longer allowed. So the royalties owed by these small webcasters will leap dramatically for 2006 (the new rates are retroactive to the beginning of last year), and will increase 37.5% in 2007, another 28% next year, another 28% in 2009, and so on.

    Companies like AOL, since they make so much money in other areas, can operate at a loss and write is off... small webcasters that base their business purely on webcasting revenues will close.