SoundExchange President Weighs In On Internet Fairness Act
October 11, 2012

Earlier this week, Pandora co-founder Tim Westergren wrote a blog post pushing for the proposed Internet Fairness Act, which would lower royalty rates for the popular digital music service. Of course, Pandora pays out these royalties to SoundExchange, which then redistributes funds to artists. However, SoundExchange President Michael Huppe says Westergren's figures in his blog are misleading.

In an interview with Bloomberg, Huppe said that the current royalty structure has seen the Internet radio business grow rapidly, as SoundExchange is now collecting digital royalties from 1,800 outlets, compared to 1,210 in 2009. However, Hupp says, "We want Pandora to succeed. We want them to grow and have a hugely successful business but we don’t believe artists should have to subsidize that business."

Huppe told Bloomberg that the payments listed in Westergren's blog are misleading and include other funds that don’t go to big-name acts. "We’re not just paying the Lady Gagas of the world, we’re also paying middle class artists who depend on this revenue stream," Huppe said.

While the current royalty agreement does not expire until 2015, and new negotiations for the next rate won't begin until early 2013, Huppe said such talks could be delayed while Pandora and SoundExchange lobby their cases in Washington. "It’s fair to say the negotiations have already begun by another means," Huppe said. "Clearly this bill is starting the process a little early and I expect this to continue into new term when Congress reconvenes."

Billboard.biz has also debunked Westergren's math in a column, as writer Glenn Peoples notes that the numbers in the Pandora blog are essentially twice what artists actually end up making, after royalties go through SoundExchange and half go to labels. You can read Peoples' analysis here.




 
Breaking News
Adam Wiener Named EVP/GM, CBS Local Digital Media
May 2, 2016
Entercom Reports First Quarter Results
Cumulus Names Brian Demay PD of WRRM-FM/Cincinnati
CBS Radio Names Kenetta Bailey SVP/Marketing
April 29, 2016
Pandora Revenue, Listenership Rises In Q1
In Brief - April 29, 2016
April 28, 2016
SiriusXM Reports First Quarter 2016 Results
CMG Tulsa Names Nathan Reed Director of Branding & Programming at KRAV-FM
Cumulus Media Shreveport Ups Julie Kansy to PD at KQHN
ASCAP Revenue Tops $1 Billion For Second Straight Year
April 27, 2016
Blaire Galaton-Kelleher Joins “The Jack Diamond Morning Show” On WRQX/Washington, D.C
Premiere Networks To Provide Distribution For Aiir
Radio Milwaukee Names Glenn Kleiman Executive Director
In Brief - April 27, 2016
April 26, 2016
CBS Radio Las Vegas Promotes JB King to Operations Manager
KLUC/Las Vegas Taps John Moug As New Afternoon Drive Host
Donna Gryn Promoted to VP of Marketing at Republic Records
KIIS FM/Los Angeles Announces Artists Performing At Wango Tango Pre-Show Village
In Brief - April 26, 2016
April 25, 2016
KROQ/Los Angeles Annouces Weanie Roast 2016
Kristie McIntyre Returns To D.C. Airwaves For Nights On WRQX
Karen Mateo Exits Her Post at CBS Radio
Beasley Las Vegas Names Mark Sturcken Director Of Sales
April 22, 2016
Music News
As Expected, Beyoncé Tops Billboard Chart With Lemonade
Quick Hits: Prince, Radio Disney Music Awards, Radiohead, classic rock festival, Red Hot Chili Peppers, Garbage
FMQB Photo Pass: Pearl Jam
Blink-182 Announce Album, Tour With Matt Skiba
Drake Expands Tour, Reveals Tracklist For Views
Quick Hits: Demi Lovato & Joe Jonas, Cash Cash, Whitney Houston, Deftones' Chino Moreno
Quick Hits: Justin Bieber, Lady Gaga & Elton John, Prince, Thrival Festival, B.o.B
Quick Hits: Bumbershoot Festival, Fetty Wap, HARD Summer, Jenny Lewis, Bayside
Prince Returns To The Top Of The Billboard 200
Drake Announces Summer Sixteen Tour, OVO Fest
Quick Hits: Billboard Music Awards, Guns N' Roses, Tegan and Sara, Twin Peaks, Jennifer Hudson, Billy Paul
Beyoncé Releases New Album Lemonade Via Tidal
Tributes Continue To Pour In For Prince
Entertainment World Reacts to Sudden Loss of Prince
Quick Hits: Mumford & Sons, P!nk, Beyoncé, Mariah Carey
FMQB NOW

Nick Petropoulos
Head of Promotion
Glassnote Music

    Question Of
      The Week

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!