According to a report by Club Net Radio released in March 2007[dead link], under the new rates, annual fees for all station owners are projected to reach $2.3 billion by 2008. This figure is more than four times that for traditional radio broadcasters who, due to terms set forth in the 1998 Digital Millennium Copyright Act, are exempt from the additional royalties imposed on digital broadcasting outlets, which compensate the performers and copyright owners of recorded works. Both traditional radio and Internet/digital radio broadcasters are responsible for royalties collected by performance rights organizations (ASCAP, BMI, SESAC) on behalf of the composers of recorded works.
Due to these rate increases, it has been suggested that some U.S.-based Internet broadcasts should be moved to foreign jurisdictions where US royalties do not apply. "For example, Mercora, a service that allows individuals to launch their own webcasts, has established a Canadian site that they believe falls outside U.S. regulatory and royalty rules."
