An e-petition against licence fees for online radio stations has been created in the UK, similar to the popular SaveNetRadio campaign in America. The campaign, headed up by PC Plus magazine already has over 100 signatures, is asking for reasonable fees which make business sense.
For online broadcasters currently with a turnover of less than £3,000, MCPS-PRS fees are currently set at £100 + VAT per year for less than 165,000 streams, or £200 + VAT for up to 330,000 streams per year.
Larger online broadcasters making more than £3,000 per year currently need to contact the MCPS — PRS alliance to work out a rate, according to the alliance website.
Tim Westergren, the founder of America online music service Pandora is keep to launch in the UK, but told PC Plus magazine that the alliance wants to change his company 35 to 45 per cent of its gross revenue per year, based on per song per user. However, a statement from the MCPS — PRS music appliance says an agreement was reached in July to pay songwriters, composers and their publishers just 5.75 per cent of gross revenues for non-interactive webcasting services. If Pandora wants to offer music for download, the agreed figure agreed was 8 per cent.
A licence from PPL for online radio stations has not been agreed yet.
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