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.
The Internet radio business changed suddenly on April 16, when the U.S. Copyright Royalty Board decided in favor of drastic hikes in the royalty fees that webcasters pay record labels to play their music. Pandora founder Tim Westergren (above) says this ruling could put an end to American internet radio as we know it.