Local News

Internet Radio Faces A Significant Hurdle

Posted Updated

RALEIGH — Internet radio is a growing phenomenon. There are hundreds of stations around the world now broadcasting across the web, but the number available may soon decrease.

Stations like KFI-AM, a California talk station, are dropping their streaming audio broadcasts because of theAmerican Federation of Television and Radio Artists' demand forextra fees for music and commercials.

Organizations that license music to stations,such asASCAPandBMI, alsowant money from Internet-only radio stations, which have not had to pay for over-the-air broadcasts.

ASCAP is trying to collect huge penalty fees for commercials using union actors that were not cleared for Internet use.

Broadcast stations such as Capitol Broadcasting'sMIX 101.5and manyothers also stream their programming. That service could end because of the uncertaintyover proposed fees.

If commercial stations leave the Internet, the gate is open for unregulated foreignbroadcasters to fill the void.

The issue of licensing music and commercials likely was prompted by the Napster controversyand the strike by actors over pay forcommercials.

 Credits

Tom Lawrence, Reporter
Ken Bodine, Photographer
Kamal Wallace, Web Editor

Copyright 2022 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.