AOL and Yahoo radio to shutdown Internet radio services?
The controversy over royalty rates on Internet radio continues to be a hot one. In March, the Copyright Royalty Board hiked online royalty rates 38% with the law officially going into effect in July of this year. Now it seems even major Internet radio providers are talking more seriously about closing their doors if the market and rates remain the same. AOL and Yahoo! indicated to Bloomberg News yesterday that they would be forced to cut all streaming radio service if a compromise can't be reached. Further, Tim Westergreen, the founder of popular Music Genome Project product, Pandora, threatened an even more immediate shut down if the rates continue to add red to their bottom line. While Internet radio supporters attempt to push bills through Congress to reach a more reasonable middle-ground, the online radio market continues to grow with listening up nearly 40% from last year. The continued growth of the market only casts the need for compromise in sharper relief and pushes streaming radio further to the brink of shut down. [Bloomberg]