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In an interview with The Washington Post, founder Tim Westergren said the company will be forced to shut down soon if the legal climate doesn't start to favor Net radio.
The Digital Media Association and SoundExchange, collectors of royalty fees for record labels, have reached an agreement that will save internet radio for the time being.
New fees don't appear to have stopped many Webcasters from silencing their streams yet, but they're still counting on a formal compromise with the music industry.
This Sunday, Webcasters are expected to hand over higher royalty fees to the recording industry. What does that mean for their devotees?
The social music suggestion site has inked a deal with the major label, giving Last.fm legitimate access to stream Sony's entire catalogue to users of its site
Barring a last-minute industry compromise, new royalty rates--which Internet radio operators argue could cripple their services--are slated to kick in Sunday.
Under pressure from fans of Internet radio, royalty-collection group SoundExchange will not raise royalty rates until the end of 2008, but the threat could still staunch the growth of Net radio.
Music industry group that collects royalty payments has offered a compromise, but it's unclear whether it will go far enough to please disgruntled Webcasters.
Internet radio might die soon, assuming the current fees that go into place next month aren't re-evaluated.
Tomorrow, some of the most popular and prominent Internet radio stations will go silent to protest the imposition of new per-song fees.