You may have noticed that while movie rental, music purchase and the news have all started gradually adopting the internet platform, the radio is a bit behind. That is actually not for a lack of quality offerings: startups like Pandora have been developing web applications that introduce you to new music based on your personal taste. They are building the emerging market of Internet Radio.

Why have you likely not heard of these excellent services yet? Because current rules and regulations are making it extremely difficult for them to grow. Under the current conditions, Internet Radio providers must give up a very large percentage of their revenue in royalties. And it is only getting worse, with forecasted rates eventually climbing as high as 70% of their profits! Amazingly enough, AM/FM radio stations do not need to pay any royalties. This is making it nearly impossible for Internet Radio providers to grow and compete.

Thankfully, lawmakers are working on a solution. The Associated Press published an article yesterday that explains how Congress is poised to pass Internet Radio legislation that will greatly reduce the royalties that Internet Radio providers need to pay, thereby allowing them to grow and develop as any business should be allowed to do.

This is truly excellent news for the consumers as Internet Radio is a phenomenal and yet vastly under-developed way to find new talent and to support tomorrow’s great artists.

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