Live365 announced in December of 2015, that it will be shutting down its operations at the end of January 2016. Thousands of broadcasters are left with less than 30 days to find a comparable provider.
Most of Live365 employees were laid off, when it’s offices were vacated at the end of the year. Why did all this happen? All of live365’s investors pulled right after the Copyright Royalty Board announced the new royalty fee schedule for 2016, which no longer makes includes special rates for small broadcasters.
The following message was sent out to all Live365 users late December 2015:
Dear Live365 Listener,
For 17 years, Live365 has offered small webcasters the opportunity to stream music and talk programming, providing an alternative distribution channel for diverse, quality content on the Internet in a legally responsible way.
Recently, the Copyright Royalty Board, the governing entity for establishing the sound recording royalty rates that are paid to copyright holders, has published the new rates for 2016-20. The previous provisions for small webcasters to opt for a percentage of revenue model were not renewed.
The current provisions end at the end of 2015. The absence of this license will make legally streaming copyrighted musical content prohibitively expensive for many small to mid-sized Internet broadcasters. Live365 relies on this license for many of their broadcast partners and, as such, has hard decisions to make regarding their future in the streaming industry.
Two weeks ago, Live365 faced an additional blow, losing the support of its investors who have helped the company with its mission for over a decade.
The company was forced to significantly reduce staff and is now actively looking for partners to help continue the service into 2016. At this time, Live365 is planning to keep their stations active while getting the word out about this investment opportunity. With nearly two decades of Internet streaming experience and thousands of paying customers, this could be an ideal situation for a company looking to diversify into streaming audio.
CEO N. Mark Lam has begun initial discussions with possible business partners as the company looks to new options in the new year.
Dean Kattari, Director of Broadcasting for Live365:
“The true value of Live365 lies in it’s diversity of content – it’s a sanctuary where you can hear music and other content that it so unlike the template broadcasting that is heard on most terrestrial radio. These stations are the hard work of real human beings who use Live365 to share their vision with the world. It’s a home for musical discovery because many of these stations play emerging artists that terrestrial stations are reluctant to take a chance on. It would be a great loss for this to all go away.”
While Live365 is going through this process, we understand that our listeners will have questions about how all of this will affect their service so we have provided a simple FAQ section to help answer some of them.
We thank you for being part of the Live365 family and hope for the best in 2016.
The Last of the Live365ers
Where Does This Leave Broadcasters?
What About Licensing Fees?
Primcast does not include licensing fees as part of the cost of our services, however we are one of the only few broadcasting service companies that provide monthly Royalty Reports. These reports will help you keep track the songs you have played and your listener hours, in order to calculate your fees. Primcast will also guide to getting your station licensed or block your US listeners to avoid the fees. The fee schedule for 2016 is available here.
Your First Month Is On Us!
Move your station to Primcast and enjoy your first month of service free. Just mention Live365 when you call 1 917 284 6090, or through our live chat.