Dear Friend,

Live365 and our Broadcasters are still fighting for parity across royalty rate setting standards as well as fairness in the rate structure itself. If you are a Live365 broadcaster please click here.

As a result of a House of Representative letter sent last month by hundreds of Internet radio broadcasters, Chairman Conyers, in the House, is likely to propose legislation that would lower the annual royalty obligations of small commercial webcasters. Internet radio webcasters are now are beseeching Chairman Leahy, in the Senate, to do the same.

The House bill requires small terrestrial broadcasters:

• with annual revenue of less than $100,000 to pay a royalty of $500;
• with revenue more than $100,000 but less than $500,000 pay $2,500; and
• with revenue more than $500,000 and up to $1.25 million pay $5,000.

In contrast to the reasonable royalties proposed in the House bill, small Internet radio services currently pay far higher royalties. Small webcasters:

• with annual revenue of $100,000 pay a royalty of $10,000;
• with revenue of $500,000 pay $60,000; and
• with revenue of $1.25 million pay $150,000.

Will Congress allow small terrestrial broadcasters to pay reasonable royalties but require small Internet radio webcasters to pay royalties that are 20 and 30 times higher? Will Congress protect the smallest webcasters, like those here at Live365?

Small webcasters play more independent music, more local artists, and more unusual genres than broadcast radio, satellite radio and cable radio combined! Where else but Internet radio will you find dozens of stations offering traditional Irish music, classical music, classic jazz, world music (with channels dedicated to virtually every nation's traditional and modern music), gospel and religious music?

Stay Tuned!

Sincerely,