fare under the same royalty system for online radio stations. The
answer is obvious, these rates
would literally bankrupt terrestrial radio. It wouldn’t make a
difference if a station had a large
audience or a small one, both
would go under. In fact, the
larger the station the more likely
they would be forced to close.
For example, an FM station
with 50,000 listeners in a small
city would pay $85 per song
($0.0017 cents multiple by
50,000) or $510 per hour (based
on 6 songs per hour) and over
$12,000 per day. That’s over
$350,000 per month! If the FM
station had 250,000 listeners,
each song would cost $425;
each hour would cost $2,550;
each day would cost $61,200;
and each month would cost over
1.8 million dollars! That’s over
$22 million in royalties each
year.
It doesn’t matter how many ad
sales are made by a terrestrial
radio station, no business would
be able to survive under those
rates. So, why did the record industry think online radio stations
could? Maybe they didn’t. Maybe this is simply their way of getting rid of internet radio stations
once and for all. If you are an
independent musician, wouldn’t
you like to know the answer?
Please click here and sign the
petition to demand that
Congress save internet radio
NewJerseyStage.com
2016 - ISSUE 1
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