LOS ANGELES�Aswe reportedearlier this month,the CRB published new performance royalty rates for webcasters right at the end of last year.Previous provisions for small webcasters to opt for a percentage-of-revenue modelwerenotrenewed and ended Dec. 31, 2015.
Savenetradio 3.0is a grass-roots push by webcasters to change this. �Let�s take a closer look at the struggle small webcasters are now facing, as described on the SaveNetRadio 3.0 Web page:
The point of the push is to �petition Congress to �step in quickly and put an INDEFINITE STAY on the Small Webcasters Agreement of 2009 OR DISCONTINUE RADIO ROYALTIES altogether and represent the tens of thousands of small webcasters facing execution. �All radio stations PROMOTE the artist being played…It’s a tradeoff that has been in place for decades. This is reverse payola…AM & FM pays nothing, why should anyone else?�
�With this new ruling by the CRB there was NO provision for small webcasters and the prognosis is not good for about 100,000 United States small internet stations. The old rates under the Small Webcasters Agreement of 2009 (set by congress) were adequate, as long as you didn’t make over $1.25 million a year and had less than 5 million listener hours monthly. These NEW rates, albeit lower, apply to everyone and there is NO provision for the small webcaster.
�The new royalty rates apply to EVERY COMMERCIAL BROADCASTER at .0017 per performance. �If you had 1000 listeners on at all times, each song would cost you $1.70 to play. If you play 15 songs an hour, the royalties alone are $25.50 an HOUR! That’s $612.00 per DAY and $223,380.00 per year.
�In stream advertising rates are currently $1.69 per thousand impressions. That means if there are 1000 people on line and hear an ad (commercial), you make a whopping $1.69 (less 60%). That is the “going rate” nationwide. With 8 commercials an hour, (we will use 1000 listeners as a basis here)�and 1000 listeners plus a 100% “fill rate” (meaning all 1000 listeners receive an ad), you would make $13.52 an hour, less 60% commission leaving $8.11 net revenue per hour.�
�Net Income is $8.11 minus SoundExchange royalties $25.50 = ($17.39)
That is negative income of ($17.39) per hour…That adds up to a net loss of ($152,366.40) annually in negative cash flow.
�Webcasting is the only businesses where a large audience is far more likely to be a liability than an asset.�
If you want to help out, sign the petition atsavenetradio 3.0. �
