Online radio station say current royalty rates are unfair and discriminatory
Lawmakers in Washington have introduced legislation in both the House and Senate aimed at reducing the royalties that online radio stations pay to music publishers and artists. Online radio stations say that current laws governing royalties are unfair to online radio stations. Online radio stations pay as much is 55% of the revenue in royalty fees.
Cable and satellite radio stations pay only between seven and 16% of their revenue in royalty fees. The legislation would move Internet radio stations into the same royalty tear as satellite and a cable radio networks. The legislation is backed by online radio giant Pandora.