Kmagrill said:<snip> Each stream is a home run to a server and each takes up a slice of available bandwidth. When all the bandwidth is used, there is no more room for more clients, or the server has to add more bandwidth at a greater cost to the station. Because Internet broadcasting's cost model is bandwidth based, the cost goes up as the listener count does. For this reason streams are self limiting. They have to be or else they would drive the owners broke. This is also one reason why many stations have moved away from 'netcasting in recent years.
The bandwidth cost is insignificant compared to the royalties sent to Sound Exchange. At the moment, it is $0.0013 cents per listener, per song. It doesn't sound like much, but it really adds up if you have significant on-line listening. What's even worse is you have to do all the accounting. It isn't like ASCAP or BMI who simply send you a monthly bill As an over the air radio station that streams, you have the pleasure of figuring out how many people listened to each song and writing the appropriate check. Even with good reporting from your streaming provider, it is a real pain to figure out
If you don't have significant streaming numbers, there is no way you can charge anything for streaming. Sponsors won't pay for 30 people listening who are all outside of your market. I'm not sure where the breaking point is, but I know that I haven't found it yet. Until the royalty situation is resolved into something that is affordable and easy to administer, only large broadcasters or people running out of their bedroom closet will be heard streaming.