Because royalties for webcasters have been dramatically increased, many Internet radio sites have proclaimed Tuesday, June 26, a day of silence. A recent ruling held that starting July 15, Web-based broadcasters must pay triple for royalties.
Presumably this ruling was meant to protect the music industry. It will end up costing Web broadcasters an extra $1 billion in administration fees. As a result, many up-and-coming artists (who struggle to gain exposure on broadcast radio) will have increasing difficulty reaching a Web audience. Online webcasters participating in the day of silence include Yahoo, Rhapsody and Pandora, among others. Save Net Radio is spearheading this awareness campaign, hoping to draw attention to the damaging effect the rate hikes will have on Internet radio.