SoundExchange Offers Cap On Minimum Royalty Fees
June 29, 2007

SoundExchange has proposed a voluntary cap on the minimum fees charged against royalties for sound recordings played on Internet Radio.  The proposal caps advance payments at $2,500 per service.  Regulations due to go into effect on July 15 would require each webcasting service to pay a $500 minimum fee per station or channel regardless of the overall number of stations/channels they are streaming. By making this offer, SoundExchange maintains it "is addressing certain webcasters’ concerns about their liability for per channel minimums."

“There was a lot of misunderstanding out there about how the minimum fee would apply, and frankly some people were wrongly stating SoundExchange’s policy on this matter,” said SoundExchange Executive Director John Simson. “We certainly don’t want anybody to get unduly hurt by the minimum fee, but there is a value to music and a cost to administering the digital royalty program, and we wanted to ensure that everyone was treated fairly – artists, webcasters and record labels.” 

“The idea that the per-channel minimum might have a disproportionate impact on certain Internet Radio stations was never presented to the Copyright Royalty Judges,” added SoundExchange General Counsel Michael Huppe.  “Nonetheless, at the request of Congress, we are trying to work with the small subset of affected webcasters, and are offering this proposal in the hopes of addressing those concerns.”

SoundExchange is also currently in active negotiations with small commercial webcasters and non-commericial webcasters such as public radio and college stations to provide below-market rates under terms similar to those they enjoyed in previous years under the Small Webcaster Settlement Act. 

Between the minimum cap proposal and an effort to accommodate small and non-commercial webcasters, SoundExchange maintains it has "made a good faith effort to address the elements of the recent webcasting ruling that have been of concern to Congress and to individual webcasters."

“I’ve said all along, we are in this together.  We want to see artists and labels fairly paid for the music they provide and we want to see Internet radio grow and flourish,” said Simson.  “There’s no question the new rates set by the Copyright Royalty Judges are fair and are reasonable in the current market.  In proposing these various accommodations to webcasters (especially small and non-commercial webcasters), SoundExchange has taken the initiative to attempt to address the concerns that have been raised by Congress and affected webcasters.”

Simson also noted that, in yesterday’s hearing on webcasting royalty rates before the U.S. House Committee on Small Business, the panel’s ranking Republican, Steve Chabot of Ohio, concurred with Chairwoman Nydia Velazquez, D-N.Y., when she surmised, "I really don't think Congress is the best vehicle to resolve this type of issue.”

 


 




 
Breaking News
eQB NOW
Pandora Revenue Up in Second Quarter of 2016
John Crenshaw Named OM at Cumulus-Youngstown, OH
Alpha Media Savannah-Hilton Head Launches Throwback Station "G100"
July 21, 2016
iHeartMedia, Cumulus, Entercom, Cox, Sun Broadcast Group & Shazam Collaborate on New Audio Measurement
Justin Riley Named PD For Power 93.3 & 106.1 KISS FM-Seattle
Universal Music Publishing Promotes David Gray to EVP/Head of West Coast A&R
Steve Mann Named APD/Night Host at WGRR/Cincinnati
John Crenshaw Named OM at Cumulus-Youngstown, OH
Entercom Names Kim Reis VP/Digital Audience Engagement
July 20, 2016
UMG And Interscope Ink Multitiered Pact With Downtown Records Celebrating 10th Anniversary
WCTO PD Jerry Padden Adds WLEV Programming Duties in Allentown-Bethlehem-Easton
Cox Media Group Tulsa Names Mary Garcia Digital Sales Manager For Tulsa Radio
July 19, 2016
Beasley Broadcast Group to Acquire Greater Media For $240 Million
UMG Appoints Maria Alonte SVP/Film & TV Synchronization for Def Jam, Island & Republic
iHeartMedia Stakes Claim to Historic New York Skyline on Iconic East River Billboard
July 18, 2016
iHeartMedia Announces The Return Of The 2016 iHeartRadio Fiesta Latina
Brooke & Jubal Show Joins Aimee KVGS (Star 107-9)/Las Vegas
WQEN/Birmingham's #JustShowUpShow Draws Big Crowd
In Brief - July 18, 2016
July 15, 2016
CBS Radio Baltimore Debuts UpClose Studio
Cealleigh Moore Named GSM At Entercom Sacramento
July 14, 2016
iHeartRadio Opens Its Doors To NPR Stations
Pierre Bouvard Insights: Millennial Myths and Realities
Music News
New David Bowie Box Set Includes Previously Unreleased Album
Quick Hits: Rihanna, KoRn, My Chemical Romance, Jennifer Hudson, Regina Spektor, Oasis
Temple of the Dog Announce First-Ever Tour
Quick Hits: The Beatles, Iggy Azalea, My Chemical Romance, Haim
Quick Hits: Alternative Press Music Awards / Marilyn Manson, Wilco, Beck, Led Zeppelin, Kesha
Drake Returns To #1 On Billboard 200
Kanye, Taylor Swift Feud Over "Famous" Lyric Again
Quick Hits: Coldplay, Schoolboy Q, Prophets of Rage, Celine Dion, Against Me!
Katy Perry Releases Olympics Anthem
Quick Hits: Britney Spears, M.I.A.
Beyoncé, Adele Earn Emmy Nominations
Drake, Adele Top Nielsen Music Mid-Year Album Charts
Quick Hits: Guns N' Roses, Beasties Boys
Taylor Swift Ranked As Top-Earning Celebrity of 2016
Quick Hits: Joe Perry, Bad Boy Entertainment
FMQB NOW

Bill Tanner
SVP/Programming
SummitMedia

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!