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
Report: Ron Fair Departs Virgin Records
Triton Digital's August 2014 Ranker: Major News Events Show Impact On Top 20 Streaming Audio Markets
DMR/Interactive Names Doug Smith VP/Marketing Strategy
October 20, 2014
iHeartMedia San Francisco Names Mark Adams PD of KYLD & KIOI
Premiere Networks Promotes Claudine Cazian To VP/Programming & Branded Entertainment
Entercom Names Carlos Lamadrid VP/National Sales, Strategic Partnerships
Pandora Hires Steve Bené As General Counsel
In Brief - October 20, 2014
October 17, 2014
In Brief - October 17, 2014
The Week In Review: 10/13-10/17
October 16, 2014
Michael Jordan Named PD At WAMZ
Dan Chertoff Named VP, A&R, RCA Records
Greater Media Chairman, CEO Peter Smyth Named Among The 2014 Giants of Broadcasting
Joe Cuello Joins TuneCore As Chief Creative Officer
Clip Interactive Reports Milestones In Revenue, MAUs, Engagement For Radio Station Partners
iHeartMedia Wins Gold Award At Healthcare Marketing IMPACT Awards
In Brief - October 16, 2014
October 15, 2014
Gayle Troberman Named iHeartMedia EVP And Chief Marketing Officer
John Geary Appointed Market President For iHeartMedia Sacramento
Sun & Fun Media Partners With Premiere Networks For Ad Sales
TuneCore Pays Artists $32.7 Million In Q3 2014 for Music Distribution, Expands Music Publishing Catalog
In Brief - October 15, 2014
October 14, 2014
Warner Music Group Broadens Senior Management Team
Tribune Media Announces $400 Million Stock Repurchase Program
New Generation Radio Partners With Colbert Media Group
Music News
U2 Sits Down For Intimate Radio Special
Quick Hits: Coldplay, Gwen Stefani, Foo Fighters, Dropkick Murphys, Madisen Ward and the Mama Bear
One Direction Reveal Four Tracklist
The Week In Review: 10/13-10/17
Quick Hits: Iggy Azalea, U2, Snoop Dogg / Pharrell, iHeartRadio Fiesta Latina
Pitbull Goes Global In November
Quick Hits: Sam Smith, MTV EMAs, Songwriters Hall of Fame, The Pixies, Fall Out Boy, Bonnaroo
Jason Aldean, Hozier Top Album Sales Chart
Quick Hits: Foo Fighters, Prince, Ariana Grande
Taylor Swift Taps Into the '80s For "Out Of The Woods"
Quick Hits: One Direction, Christina Aguilera / The Voice, Jack White, Kelly Clarkson, T.I., Wilco
Iggy Azalea Leads 2014 AMA Nominees
Quick Hits: Foo Fighters, Soul Train Awards, Iggy Azalea, Noel Gallagher's High Flying Birds, Alicia Keys & David Byrne, Forbes Under 30 Music Festival
THE WHO HITS 50! Tour Set For North America 2015
The Week In Review: 10/6-10/10
FMQB NOW

Chris P, PD
KRQQ & KMIY/Tucson

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!