BBC NEWS | Technology | 'Fatal' blow to web broadcasters

From a developing front:

BBC NEWS | Technology | 'Fatal' blow to web broadcasters: "'If these rates stand... I believe we'll see a virtual shutdown all of US webcasting,' wrote Kurt Hanson, CEO of AccuRadio, on the SaveInternetRadio.org blog.

'That will be bad for listeners, webcasters, musicians, and the record industry alike.'

But SoundExchange, the not for profit group which will collect the fees on behalf of labels and artists, welcomed the decision.

'Our artists and labels look forward to working with the Internet Radio industry - large and small, commercial and non-commercial - so that together we can ensure it succeeds as a place where great music is available to music lovers of all genres,' said John Simson, executive director of the group....

The new fees, which will apply until 2010, will charge a flat fee per-song, per-user in addition to a $500 fee for every channel owned by a station. Fees will increase every year until 2010.

Radio stations with multiple channels, such as NPR, would be charged thousands of dollars, which they claim will cripple them.

Previously, stations paid an annual fee plus 12% of their profits."