It seems that the recording industry is trying to stamp out all but the largest internet music broadcasters by raising the royalty rates. I understand why this is considered a Bad Thing by those who like music, but I am of the “it will have to get worse before it gets better” school in this regard, not to mention that whatever one may think of modern copy right law, this music is in fact the property of the music companies. It seems to me that a better solution than fighting the companies is to convince the real content producers to not make their content the property of those companies. This is already a trend and I suspect that this kind of move will only accelerate it.
Maybe that’s something Pajamas Media could investigate. The primary purpose served by music companies was aggregation. That’s become somewhat less important with the Internet, but I think more significantly the cost of aggregation has gone down so that small firms can perform the work, take a much smaller slice, and still be quite profitable.