Gloomy Celticradio.net ~might~ Go Out Of Business?, H.R. 2060; Internet Radio Equality Act

SUBJ: gloomy "celticradio.net ~might~ go out of business" email from Paul McArthur 12 July 2007

Hi Paul,

You are awfully gloomy.
It seems that you are assuming that we all aren't willing to pay higher fee(s) to keep celticradio.net going.
Create a payment structure that'll cover your higher operating costs based on higher royalty rates.
Do you think that customers will abandon celticradio.net in droves if they are asked to pay more?
You don't know that until you test the "new business plan."
I'm sticking around.
What's everyone else think?

Why isn't there a discussion about this already?

Cheers.

Laura S.
north central coast of California, USA

> H.R. 2060
> Internet Radio Equality Act
> Our last day for this campaign is tomorrow.
> Unfortunately, the reality is that webcasting will be for only the large rich corporation after July 15th. Those that can "cut" a deal with the RIAA. While I have been hopeful that Celtic Radio could continue, the writing on the wall seems to state otherwise.
> Again, my heart felt thanks for everyone that has support our music vision over the years!
> Paul MacArthur

A.O. aka Laura,

Your plan certainly sounds reasonable, except, you forgot one thing. The fees that are being discussed by the government, are meant to put internet radio out of business. The fees are extremely high and they know that even the largest of any internet radio station could not afford to pay them. Hence, commercial radio wins.

Even though CR has almost 16,000 (as I write this) folks who have signed up to be a member, I would be greatly surprised if 1/10 of that number have anything to do with CR, be it just the radio and/or the forum. If you go into the list of people, you will find that most have never even posted in this forum. You yourself are proof of that. The above is your first post in almost 4 years as a member. This isn't meant to bash you and the others, it's just to make a point to show, even though there seems to be a large membership here, there really isn't. Which means, the active members are not enough to even come close to supporting this radio station, with the fees that the government wish to charge.

Make your gripe known, call your Senator and Congressman. It's that simple.

Amen to ASE. As much as I'd like to see otherwise, CRN already only barely pays for itself through the wide array of things Paul has found to fund it. In order to pay these rates, founder fees would probably have to increase to a couple hundred dollars a year each, provided we didn't lose any founder members in the process. Even then I can't say it would be enough.

Celticradio has my loyalty. I already called my congressmen to stand up for the new Internet Radio act to save interent radio. But paying more is something I'd also be willing to do to keep it going.

If I take the rate times the number of sound performances on a yearly basis it comes to about $10,000 a year just for the royalty payments. This will increase each year until 2010 when it would be $25,000.

This is on the assumption that we do not gain any more additional listeners!

Add the other license fees which are about $2000-$3000 and then add all of the regular expenses like hardware, bandwidth, software, mailing & mailers, ink catridges, domain charges, hosting charges and other misc stuff then you are talking about 25%-40% additional expenses.

The audio portion of our broadcast does not generate any revenue; other than a small referral fee that reduces our bill from Live365. While we offer audio advertising, we have 0 audio advertisers.

The rates are more for a larger business like AOL, Yahoo, MSN, CBS - they make tons of money in advertising and should pay appropriately for broadcasting music which adds value to their site and business.

Small webcasters should have a special deal which allows them to grow. Smaller fees to start out then larger fees as they get bigger. Having these large fees for small broadcasters will result in all of them going out of business. I have gone over the numbers and there is just no business plan to support that.

There is also a $500 fee for each channel. That is why Live365 is fighting this. They would need to add $500 to each broadcasters fee which would more than double the rate (and that does not include the new royalty rate!).

Welcome, Ancient One! Glad you have found us.

Many of us are loyal to Highlander Radio and would be willing to pay extra fees, but I think Paul has ably demonstrated that the fees in question are off the charts. The best thing is to be thankful for the reprieve we have gotten, but still fight this thing like crazy to get some permanent relief from Congress. I intend to keep the pressure on my senators and reps. They need to be reminded that they work for us!

Thanks for all the good work, Paul.

I am behind Celtic Radio 100%. I would gladly pay what ever it takes to keep it going. This place is the best place ever. I am calling and calling.. I just wish tere was more we could do.

Slainte