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
Beasley Broadcast Group Names New Management Team In Tampa-St. Petersburg
Beasley Promotes Chris O’Kelley To OM In Augusta, GA
Darla Thomas Named PD At WLNK-FM
November 25, 2014
Entravision Announces Extension Of Share Repurchase Program
OG 97.9 FM Debuts In Atlanta Today
Kassof Research: Country P1’s: Country Proud
In Brief - November 25, 2014
November 24, 2014
T-Mobile Doubles Down On Music Freedom, Adds 14 New Services
Shawn Barron Named VP, Urban A&R For Atlantic Records
Kassof Research: A/C P1’s: Comfort Food
In Brief - November 24, 2014
November 21, 2014
RAB Report: Radio Shows Double-Digit Growth In Digital Revenue For Q3
The Week In Review: 11/17-11/21
Jaysson Reno Named VP, Sales For KGO-AM, KSFO-AM
Kassof Research: CHR P1's: Excited & Social
In Brief - November 21, 2014
November 20, 2014
Cumulus Promotes Jeff Davis To National Director Of Stratus Music Scheduling
Mike Fredrick Named Hubbard Radio Cincinnati VP/Market Manager
Hubbard Radio Announces New Division, 2060 Digital, LLC
Kassof Research: Christian Radio P1’s: Mission Accomplished
In Brief - November 20, 2014
November 19, 2014
Musicians On Call Raises $700,000 At 15th Anniversary Celebration
iStreamMEDIA Adds Christopher Cottrill As VP/Music Content, Programming
Jordan Blaugrund Promoted To VP, Digital Marketing, RCA Records
DeVito/Verdi Retained To Drive Awareness Of NextRadio App
Music News
One Direction Celebrate 4th Straight #1 Album
Quick Hits: Rihanna, Bruce Springsteen, Prince, Scott Stapp
Fall Out Boy To Drop Album in January
Quick Hits: Kurt Cobain, One Direction, Bob Dylan, Baha Men
One Direction Dominates 2014 AMAs
Katy Perry Is Ready For Some Football
Quick Hits: 5 Seconds of Summer, Drake & 2 Chainz, Grammy Foundation Legacy Concert, James Blake & Kanye West
Iggy Azalea, J. Lo To Team Up on AMAs
The Week In Review: 11/17-11/21
Quick Hits: Saturday Night Live, Billboard Touring Awards, YouTube Music Awards, Arcade Fire
Quick Hits: One Direction, Taylor Swift, Young The Giant, Guns N' Roses, Jimmy Ruffin
Taylor Swift's 1989 Remains At #1
Quick Hits: U2, Katy Perry, Paramore, Lana Del Rey, The Voice
Foo Fighters Announce Major 2015 North American Tour
Ed Sheeran Launches "Thinking Out Loud"
FMQB NOW

Jon Zellner
SVPP, iHeartMedia

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!