Streaming Service Live365 May Be Forced To Close

Citing the recent CRB ruling on  royalty rates and loss of investor support, the internet streaming service known as Live365 is planning on ending service January 31, 2016.

In a statement to its participating broadcasters, the service stated:

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. 

And from 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."