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New law could save internet radio

Timothy Rayner

Get the facts straight. 

The actual figures are 7.5 percent or 0.33 cents not 33 cents.

Lets take a radio station which makes $2000 per month in advertising

0.33 cents per listener per hour for a listener base of 500 would work out at $10,551.42 per year. If they took this option they would still have a little shy of $13,500 for running costs. They could save more by taking the option of 7.5% of income and pay $1,800 per year leaving them with £22,200. An average pop song lasts 4 minutes so with the original proposed rate of 0.08 cents per song per listener the same station would pay $52,560 with no alternative. So the proposed bill would give the company a SMALL profit. If the bill is not successful and the 0.08 cents per track per listener fee stands then the same company would run at a rough loss of $28,500.

Jonathan

H.R. 2060 

For those that want to contact your representative the bill is known as The Inslee-Manzullo Internet Radio Equality Act, H.R. 2060.