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Says Streaming Fees Would Threaten Free Music Online

By Published on .

CHICAGO (AdAge.com) -- A royalty rate proposed last week by the Copyright Arbitration Royalty Panel could make it difficult for the Internet radio industry to stay in business as a free service to consumers, the National Association of Broadcasters warned.

If approved, terrestrial radio stations streaming over the Web would have to pay 0.07 cents per 100 songs played, while Internet-only broadcasters would pay 0.14 cents per 100 songs played.

Viewed as a victory for record labels and music artists, NAB and radio companies such as Clear Channel Communications said streaming strategies would be re-evaluated.

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