B101 Pulls Plug On Streaming
March 13, 2009 at 1:47 PM (PT)
Citing the rise in online music royalty rates, JERRY LEE-owned AC WBEB (B101)/PHILADELPHIA has taken down its online stream. B101 had been one of the leading streaming stations in the nation, with its stream actualy turning up in the PHILADELPHIA PPM ratings.
“The excessive SOUNDEXCHANGE rates don’t work for artists, for local radio stations, or for listeners,” said LEE. “Many stations, including mine, won’t be able to afford to stream music. Less streaming means fewer revenue opportunities for stations and ultimately less money for the artists who receive royalties. It’s puzzling why SOUNDEXCHANGE would want to destroy a potential growth business opportunity for the artists it purports to represent.”
LEE estimates that by 2015, nearly half of all the revenue that WBEB would be able to generate from streaming music online would go to SOUNDEXCHANGE in the form of royalty fees. At those levels, streaming is not a viable business option, according to LEE.