Cat Galaxy Encourages Listeners To Protest New Royalty Rates

Cat Galaxy, the internet radio station for cats is continuing to ask its listeners to keep signing online petitions and to write their representatives in congress to protest the Library of Congress Royalty Board's passing of new rates that would ultimately put an end to internet radio. The new rate structure was passed earlier this month on March 2nd.

Up until very recently, internet radio stations have paid royalties based on revenue but the new rates will call for internet broadcasters to pay .08 cents for every song played per performance on their stations last year, .11ents for every song played this year, .18 cents for 2009 and .19 cents in 2010. Internet stations would also face a minimum mandatory payment of $500 as well. The new rate structure was originally proposed by the RIAA (Recording Industry Association of America) backed SoundExchange. Under the old structure webcasters paid royalty equivalent to 10% of their revenue up to $250,000 and 12% after that.

Most small webcasters didn't fall into the category because they weren't even close to threshold. Under the new rate structure, many small webcasters would have to pay about 100% of their made revenue to operate, which is beyond their means.

"This new rate structure could shut down many internet radio stations and really harm the industry as a whole. Station's like ours might very well cease to exist if the new royalty rates are the final word. We've worked very hard to build our station for all the cats to enjoy. A majority of webcasters like ourselves spend their own money to broadcast and to keep their stations free for the listeners to enjoy. Our station is unique in the fact that we broadcast to cats. We also have a larger audience now as we've been around for 6 years. That's a long time for a station such as ours to be broadcasting especially since we're the only station of its kind in the world," said Nohl Rosen of Cat Galaxy.

Meanwhile, National Public Radio, Clear Channel Communications as well as other internet radio broadcasting providers are currently fighting the new rates and have filed petitions to have a new hearing granted by the CRB. Webcasters are also encouraging their listeners to keep making their voices heard.

"Our listeners are very important to us. We know that if our station were to shut down, that they'd be the ones that lose. Also, affected would be the animal rescue groups we work with. Many of our broadcasts have spread the message about the importance of spaying and neutering, encouraging the TNR (Trap, Neuter, Return) program for feral cats, and also promoted cats currently awaiting adoption at local shelters. We've done what we can to promote the feline causes and we've done what we can to give cats a voice and will continue do so. However, this new rate increase could put an end to all that if it's left to stand," Rosen added.

Chief Copyright Royalty Judge James Scott Sledge asked for position statements from interested parties protesting the new rate increase as well as SoundExchange to present its arguments to be filed by April 2nd.

For more information about Cat Galaxy check out the station's web site at www.catgalaxymedia.com.