A US District Court has ruled AOL, RealNetworks, and Yahoo should pay license fees that could amount to as much as $100 million to ASCAP and its membership for songs which they streamed to users from 2002 until now. The ruling also includes payment for use until 2009.
Sounds good on paper. The little guy wins, right?
Look, I think songwriters deserve to be paid. I live in Nashville and own a publishing company! But since the rate will likely be more than what is paid by traditional broadcast radio stations, my opinion is that it will make it more difficult for anyone to play music online in the future, which will mean nobody gets paid.
So how is this good for the music business?