Ars Technica is reporting that a panel of judges at the Copyright Royalty Board has denied a request from the NPR and a number of other webcasters to reconsider a previous rulling force Internet radio services to pay crippling royalties.

SoundExchange (the music industry’s royalty collection organization) Executive Director John Simson declared that this is a victory for performing artists and record labels who work long and hard to produce music for all to enjoy. “Our artists and labels look forward to working with the Internet radio industry—large and small, commercial and noncommercial—so that together we can ensure it succeeds as a place where great music is available to music lovers of all genres,” said Simson in a statement.

Perhaps Mr. Simson should take a closer look at what he is celebrating. The new rates are likely to seriously reduce online radio play and that is likely to reduce music sales and overall royalties. The music industry seems bound and determined to eliminate every distribution partner except iTunes, Walmart and Target.