150 % of Revenues Is "Fair Market Value"?!

Accuradio will have to convince web advertisers to pay much higher rates, turn to a subscription-based service (or if they already are, charge their subscribers more money), or go out of business, leaving one fewer outlet for musicians to reach consumers. From L.A. City Beat:

"We were paying about 12 percent of our revenues, so that came out to be about $48,000 on $400,000 in revenues,� says Paul Maloney, editor of RAIN: Radio and Internet Newsletter, and VP of music programming at Chicago-based Internet radio service, AccuRadio.'This decision has us paying per performance, so, for 2006, that is going to increase our royalty obligation to about $600,000. That is 150 percent of our revenues�'"

Hat Tip: Hip Hop Libertarian.