It seems smaller internet radio stations aren’t the only ones that are feeling the pressure since the Washinton-based company SoundExchange proposed and got their agenda passed that increased streaming fees for artists this summer.

SoundExchage’s push was heavily objected to by many internet radio statons big and small. Now that the higer royalty fees are in place the burdon is getting too big for many to handle, forcing many online entities to shut down shop.

However, no one expected this “death blow” to be as far reaching as two major internet players. Both AOL and YAHOO! have announced that if revenues for their internet stations did not get better, they would be shutting down operation of those areas of their business.

So question…Is SoundExchange, which is intended to operate in the best interest of their artist clients too aggressive to get royalties and not operating in their clients best interest? For if they manage to shut down two of the largest sites out there? Are they cutting off an entire revenue stream for their clients even if at a lower royalty rate?

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