On air signA few weeks ago, it was silent for a day in the land of Internet Radio when thousands of webcasters went silent to protest the outrageous rates that were set to be imposed on July 15th. Up until late last night, no deal had been made. With July 15th just two days away, everybody was left to assume that Internet Radio wouldn’t be around come Sunday. Fortunately, late last night it was reported that webcasters have in fact worked out a temporary deal with the recording industry.

Go ahead, let out your sigh of relief, for now anyways. Wired reported that this deal is not final and that ongoing negotiations are going on. For now, the minimum charge of $6,000 per channel will be waived. Knowing that this could change, however, doesn’t make me feel very good about it.

On the bright side, at least the two sides are talking and working on negotiations. One of Pandora’s founders, Tim Westergreen said that it was getting close. “I have always had underlying optimism that sanity was going to prevail, but I was beginning to wonder.” For now, all of your favorite Internet Radio stations like Last.fm and Pandora will remain on-air.

All I can say is that it’s an extremely tough business to be in right now, and I don’t envy any of the Internet Radio sites who are struggling to provide their services. Hopefully they will be able to work-out a reasonable arrangement that will keep everyone on-air for many years to come.

There Are 3 Comments

  1. This is good news! At some point the mu$ic indu$try has to come out of their greed induced stupor and appreciate the harm they are doing themselves and their clients in the long run. The more they push to such extremes the less sympathy they engender for their cause. Mayhaps, me thinks, they believe might makes right.

  2. I wasn’t aware that Last.fm was counted as a radio station. Surely they’re not stations if they allow you to listen to any music you want, when you want. That’s very similar to file sharing, without the ability to transfer the track to any media you want. Correct me if I’m wrong, but these sites make money out of allowing free access to other peoples’ music. YouTube is arguably the same, but all the content is user uploaded and can be removed. So what’s a net radio station then – one that broadcasts/transmits/offers content as normal, or a site that just allows you to listen to whatever you want?

  3. That’s a good point Inferno_str1ke…but I think these “radio stations” are considered to be anything that stream music/playlists over the Internet to a user. Sure it’s not entirely accurate but there isn’t much we can do about it. :(

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