Jupiter Forecasts Gloom For Web Music

Royalty fees to turn webcasters to talk or silence:

Jupiter Research said royalty fees could bankrupt Web radio stations by forcing them to pay more to play songs than they could ever make up in advertising revenue–a prediction that’s already come true for dozens of stations that have ceased their Webcasts because of the payments.

“While listening to online audio is up…streaming music has yet to produce a survivable–let alone profitable–business,” the report said.

Researchers said the only viable Web radio formats over the next 18 months to 24 months appear to be talk and sports radio.

The report comes three months after the Library of Congress implemented controversial royalty fees requiring Webcasters to pay labels .07 cent every time they play a song for a single listener. Although the labels complain the fees are too low and will not adequately compensate artists, Internet radio stations warn the payments will cripple their ability to deliver Webcasts. Both sides are asking a court to reconsider the fees….