I agree. .017 for every listener on every track they hear. When you see .017 it doesn't seem much but if you think about it this way - say we have 25 listeners and all 25 listen to 8 tracks in an hour (that is low) it would be (my math skills are horrible so please forgive any mistakes) 3.40 for an hour. 3.40 x 24 hours in a day = 81.60 for one day. 81.60 times 30 days in a month = 2,448 x 12 months in a year = $29.376. That is for royalties only. Then there is the additional 500.00 a year to Sound Exchange just to be able to stream.. then there is paying your host.
We were paying Live365 about 50.00 a month for quite a bit of space and a 100 listener limit. We would average 6500-7000 total listening hours a month. That is small compared to some other stations. Now we are paying 6.00 a month for our host, and 60.00 a month to Stream Licensing. They cover our royalties as of now. There is a chance that cost will go up and if it does that will be the end of MHR. I am not sure exactly how Stream licensing is doing it. - maybe an agreement with Sound Exchange. I am just not sure. So our costs have gone up. Now here is the kicker.. we can only have 25 listeners at any one time - not 100. We also can not exceed 4000 total listening hours a month or what we pay Stream Licensing goes up. They will not even accept a station that has over 7K listening hours a month. Therefore we have to really watch our numbers. We may have to kick people off after a certain amount of time if we find ourselves exceeding what we can afford. It wouldn't be a harsh time kick off point - something like after a few hours. If there was space you could always log back on. This would be done to prevent people from starting a player and walking away letting it go for hours on end. We had a person in Lithuania do that - after 18 hours I kicked them off.
Some of the larger stations have advertisers/sponsors. We do not. Every penny to keep the station going comes from us. We have tossed the idea around, but it would be a last resort done only to try to stay on air. Not something we really want to do.
There are a lot of great stations that had to close down and walk away. it makes me VERY sad. I can only imagine what the costs for MouseWorld would be - terrifying. They were huge.
This is also making me VERY thankful we (so far - knocking on wood) have been able to weather the storm. Our survival lies in the hands of Stream Licensing and their ability to get a decent rate.
Here is a link to the petition that is circulating. Every single signature is a helpful.
http://www.radiodiversity.org/