SoundExchange Offers Small Webcasters Discounted Rate
August 21, 2007

There is some relief for small webcasters in the battle over Internet royalty rates, as SoundExchange today began sending formal offers to small webcasters that would allow them to continue operating through 2010 under essentially the same terms they have enjoyed under the Small Webcaster Settlement Act (SWSA). This offer means that qualified small commercial webcasters would be guaranteed the same rates through 2010 that they have received since 1998 for the use of recordings owned by SoundExchange members. Webcasters who sign the agreement will be able to stream these recordings at subsidized rates, though any recordings of non-members will still be subject to the new rates.

By providing each small webcaster with an agreement that extends the terms of the Small Webcaster Settlement Act, it takes the uncertainty out of the air as to most of their programming, and lets them continue streaming,” said John Simson, Executive Director of SoundExchange.

As part of the agreement, small webcasters (defined as those earning $1.25 million or less in total revenues) would pay royalty fees of 10 or 12 percent of revenue. The proposal also includes a usage cap to ensure that this subsidy is used only by webcasters of a certain size who are forming or strengthening their businesses. The webcasters have until September 14 to accept the agreement, and those who do not sign it will be responsible for paying the new rates that were first announced by the Copyright Royalty Board in March.

In announcing the discount, SoundExchange noted that while it is extending this offer on behalf of its members, it ultimately hopes for an industry-wide resolution to be implemented by the Copyright Royalty Judges. “We continue to negotiate with the relevant parties, and are hopeful that we can reach a solution that works for all small commercial webcasters," said Michael Huppe, General Counsel of SoundExchange. "Of course, such a solution would need to be submitted and approved by the judges in order to apply industry-wide."

Simson added, “Even while substantial progress has been made on all of the issues of concern with respect to the CRJs’ decision on webcasting, we cannot forget that Congress granted webcasters and others unfettered access to music – they can play it whenever they want without permission – and all they have to do in return is pay a fair royalty." 

Breaking News
SiriusXM Reports Third Quarter 2016 Results
WWKX (HOT 106)/Providence Launches HOT Morning Show
In Brief - October 27, 2016
October 26, 2016
Beasley Media Group Names Justin Chase EVP/Programming
Beasley Media Group Appoints Buzz Knight To VP/Programming
Pandora Reports Q3 2016 Financial Results
BIA/Kelsey Forecasts Overall U.S. Local Advertising Revenues
Nielsen Reports 3rd Quarter Results
October 25, 2016
John Garabedian Leaving Open House Party
The 4th Annual CBS RADIO “We Can Survive” Concert
Brooke & Jubal Joins WSHE/Chicago For Mornings
KWEE/Portland Adds Tino Cochino To Nights
October 24, 2016
CBS Radio Names Brian McHale SVP/Information Technology
Nielsen Announces Launch of National Television Out-Of-Home Measurement Service
The Atlantic Records New York Team Celebrates Charli XCX
October 20, 2016
CBS Radio Signs Michael Martin To Multi-Year Contract Renewal
SportsRadio 94WIP/Philly Adds Joe Decamra & Jon Ritchie To Middays
October 19, 2016
Frankie C Extends Agreement With KZHT/Salt Lake City
Voncile Anderson Named Beasley Director/NTR Sales In Tampa Bay
In Brief - October 19, 2016
October 18, 2016
Rob Stringer Promoted To CEO Of Sony Music Entertainment
iHeartMedia St. Louis Announces The Debut Of The New Alt 104.9
Entercom Agrees To Acquire Four Radio Stations In Charlotte From Beasley Broadcast Group
Ebro Returns To Portland
Music News
Billboard Women in Music Event to Honor Shania Twain, Halsey
Quick Hits: Twenty One Pilots, Green Day, Justin Bieber, Tom Petty & The Heartbreakers, Mariah Carey, Neil Young
Prince’s Paisley Park Approved to Open Permanently for Public Tours
Quick Hits: Jason Derulo, Alessia Cara, Hailee Steinfeld, Lady Gaga, Tove Lo
Kings of Leon Earn First #1 Album
Quick Hits: The Chainsmokers, Drake, Prince, Sting, Charlie Puth, The Decemberists, Dead or Alive
Quick Hits: Radiohead, Frank Ocean, A$AP Ferg
"Crash" Into Against Me!
Maroon 5 Closes The Top 40 and Hot AC Radio Panels Upon Impact
Jordan Fisher Will Make His Broadway Debut In Hamilton On November 22
Quick Hits: Kanye West, Eminem, Bruno Mars, Gwen Stefani
Pearl Jam, 2Pac & Depeche Mode Lead 2017 Rock Hall Nominees
Green Day Tops Billboard 200 For Their Third Time
Quick Hits: Liam Payne, Rock & Roll Hall Of Fame, Mother Love Bone
Quick Hits: Kings Of Leon, Elton John, Roger Waters

Jon Zellner
EVP/Programming Operations

          Question Of
           The Week

FMQB Member Login

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