Going off the Internet ? Radio stations face higher fees - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Going off the Internet ? Radio stations face higher fees

Jamey Karr says his listeners may not be able to tune into his station on the internet for much longer Jamey Karr says his listeners may not be able to tune into his station on the internet for much longer
"That's their job to pay for that so that we can listen to it, right?" asks Nicki Cargill "That's their job to pay for that so that we can listen to it, right?" asks Nicki Cargill

Higher royalty fees in effect today could force some Amarillo radio stations off the internet air. Local radio stations tell us it's like getting charged again for a bill they've already paid.

Stations pay royalties to musicians and record companies to put their music on the air. But one general manager says record companies are now asking three times their prices to stream that music on the internet.

Jamey Karr says his listeners may not be able to tune into his station on the internet for much longer. "Financially, we're really behind the eight ball on this." KXGL boasts hundreds of internet listeners, but karr says the site does not generate enough money to pay royalties that could cost an extra 12 to 24,000 dollars a year.

"We'll either have to charge for it or we'll have to let it go."  Charging for internet radio hits a sour note with listeners. "That's their job is to pay for that so that we can listen to it, right? isn't that the point of the radio?" asks Nicki Cargill.  Karr has his own suggestion for a solution: "why not start signing people to the record labels that generate sales? Rather than come back and put it on the very promotional outlet for the record companies."

Karr and other radio station managers are still hopeful they can negotiate a better deal with record companies that will not only keep them on the internet, but keep them from digging too deep in their pockets.

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