A bad day for internet radio

I noticed this earlier. One of the internet radio pioneers is toast. This follows the recent fiasco over royalty fees, set by copyright regulators that require streamers to pay .07 cent, or about a 14th of a cent, every time they stream a song to each listener. KPIG made good on it’s threat to to pull its Webcasts in the face of the new royalty fees. These fees means that the netcasters have to pay royalties for each person that listens to the stream.

Imagine if traditional terrestrial radio had to pay such fees! I What a perfect way to kill off a new estate and burgeoning business. No wonder the economy is in the crappper. With these sort of restrictive practices and monopolistic tactics, how could any emerging business model even have a whimper of hope? Interestingly enough, KPIG is also a terrestrial radio broadcaster along with being one of the first streamers with live 24/7 netcasting.

Also earlier this week, Radio and Records reported that Clear Channel, Emmis, Entercom, Bonneville, Susquehanna and Cox joined the NAB in appealing to a U.S. District Court decision on webcast royalties. The terrestrial broadcasters argued that they should be exempt from paying musicians and copyright holders performance royalties for AM and FM broadcasts streamed over the Internet. A “double-dipping” tactic that they have used to cry “foul” over extra fees. Undoubtedly the lobbying power of traditional broadcasters will succeed where the struggling netcasters failed in trying to head off these restrictive fees.

From the KPIG site:

KPIG’s owners have decided that they have no choice but to suspend KPIG’s live webcast in the face of the fees that would be due under the most recent Copyright Office ruling. We’re definitely hoping that this is just temporary, and that a reasonable solution can be found soon.

Our webcast will continue with a mix of live recordings made here at KPIG (which aren’t subject to the fees) – with more features coming soon. For the time being, the playlist will continue to show what’s on FM – so at least you local Pigs can use it.

Also on Wednesday the RIAA stated that they have begun pressing for anti-copying technology in future digital radio standards. CNet has the skinny. And the insanity continues.