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Appeal Filed to Halt New Internet Radio Royalty Rates

A disparate group of independents and major broadcasters has filed appeals protesting the new royalty structure implemented for internet radio, reports Broadcast Newsroom.

The new structure was supported by SoundExchange, a collection agency of sorts for record labels. It would dramatically hike the royalty payments internet broadcasters would have to pay for streaming music from the major labels. That hike is so large it threatens to strangle internet radio just as technology catches up with publisher and listener expectations.

Entities ranging from independent SomaFM to Yahoo have all objected to the new royalty structure. A coalition of webcasters will launch a public awareness campaign protesting the payments in the hopes of catching the eye of Congress.

Commercial radio stations looking for ads within online streams to become an additional revenue stream. It could also hamper public radio, which is normally able to pay lower royalty rates than commercial stations.

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