Last year, an obscure federal panel ordered a doubling of the per-song performance royalty that Web radio stations pay to performers and record companies.
Traditional radio, by contrast, pays no such fee. Satellite radio pays a fee but at a less onerous rate, at least by some measures.
As for Pandora, its royalty fees this year will amount to 70 percent of its projected revenue of $25 million, Westergren said, a level that could doom it and other Web radio outfits.
This week, Rep. Howard L. Berman (D-Calif.) is trying to broker a last-minute deal between webcasters and SoundExchange, the organization that represents artists and record companies. The negotiations could reduce the per-song rate set by the federal panel last year.
Remember that fuzzy static between channels on the old TVs? Today more than three-quarters of those radio airwaves, or "white space" spectrum, are completely unused. This vast public resource could offer a revolution in wireless services of all kinds, including universal wireless Internet. The FCC will soon decide whether to open this unused spectrum for general usage, and your voice matters -- a lot. So if you agree that freeing the white spaces represents a vote for the future of the Internet, please sign our petition and help spread the word about this campaign. Learn more
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