What is the X5000?

X5000 program is created to address the needs of our most successful broadcasters to bridge the gap into full commercial broadcasting. The aim of X5000 is to create a partnership between Live365 and broadcasters with a proven track record of drawing a large audience. X5000 program partnerships extend station capacity to accommodate growth that would otherwise be cost prohibitive. Under the X5000 program, broadcast fees to Live365 are waived and broadcasters receive a number of benefits, including higher simultaneous listener caps, extra storage, higher revenue sharing rates and new distribution opportunities. In 2007, we had broadcasters earning $300 to $400 per month in rewards with double and triple listening hour growth as well. In return, broadcasters are responsible for royalty payments to SoundExchange and other rights holders.

An X5000 broadcasting package invitation is recognition by Live365 to our broadcasters that have reached the pinnacle of personal broadcasting. The X5000 broadcasting package are extended by invitation only and are subject to Live365 approval. If your broadcast fits the profile for the X5000 program, please visit the sign up page, and Live365 will consider your request for X5000 membership

Who should apply to the X5000 program?

Broadcasters likely to be accepted into the X5000 program fit the following criteria

• Purchased one of the larger personal broadcasting packages such as the P500 that is close to reaching their maximum simultaneous listener limits


• Able to commit to paying DSRP royalty coverage to SoundExchange for the duration of the 2008 calendar year, e.g. minimum payments required under the 8/21 SCW (small commercial webcasters) Term Sheet or other category of webcaster


• Are currently licensed with, or will be licensed with, SoundExchange for DSRP royalty coverage, via the 8/21 SCW Term Sheet or other category of webcaster


• Interested in being considered for third-party premium distribution such as iTunes radio directory, TiVo and other set-top boxes, mobile devices, and syndicated websites. Listings are at the discretion of Live365 and our content partners

X5000 features:

• No Live365 broadcasting fees. Live365 covers your streaming costs with advertising and VIP subscription revenue. A one-time set-up fee of $299 per station is waived for Live365 broadcasters who have broadcast for at least 90 days.


• Option to apply to either of these two plans:
  • Plan A: Two stations with 500 SLs each at 64k mp3PRO
    • Both stations must broadcast in Basic mode at least 90% of the time each
    • Both stations must be eligible for Live365 advertising and run standard advertising and branding blocks
  • Plan B:
    • One station with two streams
      • Non-VIP listeners access a 500 SL 64k mp3PRO stream
        • Must broadcast in Basic mode at least 90% of the time each
        • Must be eligible for Live365 advertising and run standard advertising and branding blocks
      • VIP listeners access a VIP only (0 SL) 128k mp3 stream
        • May broadcast in either Basic or Live mode
        • Does not need to be eligible for Live365 advertising


• Option to purchase additional SLs. Additional simultaneous listeners may be purchased for $50 per month per 25 simultaneous listeners. VIP only Plan B stream not eligible.


• Eligible for third-party distribution. X5000 broadcasts will be eligible for third-party distribution such as iTunes radio directory, TiVo and other set-top boxes, mobile devices, and syndicated websites.


• 10GB of storage space per station.


• No listener login requirement. Listeners may listen to X5000 stations without creating a Live365 listener account. This feature is subject to change.


• Increased Revenue Sharing. In addition to the one-time VIP bounties (25% of the initial subscription fee per VIP referral), X5000 broadcasters receive tripled VIP subscription revenue shares.


• Priority technical support. X5000 broadcasters have both online and phone access to customer support.


• Access to Station Staff Admin tool. X5000 broadcasters will have the ability to manage multiple stations with a single login and grant station administrative access to multiple DJs and managers. Broadcasters can involve other DJs and delegate station management responsibilities without exposing critical information like billing information


• Web-based tools to help with SoundExchange reporting. Live365 assists X5000 broadcaster with their monthly royalty reports. Broadcaster is responsible for the submission of reports to SoundExchange.


• Non-SoundExchange Member Performances. In the event that you are billed for non-SoundExchange member performances for 2006, 2007, and 2008, Live365 will cover the costs above your minimum.


• One complimentary VIP Membership.

Important points to consider for X5000 broadcasters

Although the webcasting royalty contract is between the X5000 broadcaster and SoundExchange, Live365, through negotiations, the appeals process, and legislation efforts, is pursuing a fair and viable royalty resolution on behalf of our X5000 broadcasters. All broadcasters should be aware of sound recording royalty rates set by the Copyright Royalty Board (CRB) in March 2007 for webcasters for period 2006-2010. Visit SoundExchange for the CRB royalty rates from 2006 through 2010. Any forthcoming industry-wide royalty resolution or any new SoundExchange offer to particular categories of webcasters may require Live365 to revise the X5000 program.

Should you choose to cover your own royalties under the 8/21 SCW offer by SoundExchange, beware it only applies to SoundExchange members. To limit the liability of royalty costs, you may want to consider limiting your music to that of SoundExchange members.

Moreover, royalty and licensing regulations pertaining to non-U.S. listeners of an Internet radio station remain internationally a legally gray area yet to be resolved. Live365 may be forced to remove or restrict listening to certain countries outside the U.S. depending on the resolution of these issues. Should this happen, we would make every attempt to notify you of the upcoming changes.

We look forward to building a successful commercial Internet radio venture with our X5000 broadcasters.