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
Louie Diaz Named PD At KLIF/Dallas
In Brief - August 29, 2014
The Week In Review: 8/24-8/29
August 28, 2014
NuVoodoo Releases Social Media Findings Of Ratings Prospect Study
T-Mobile's Music Freedom Expands With Six New Music Streaming Services
In Brief - August 28, 2014
August 27, 2014
STRATA Survey: Ad Agencies’ Interest In Digital Video Jumps 45% From A Year Ago
In Brief - August 27, 2014
August 26, 2014
Scott Carter Promoted To SVP/Marketing At Epic Records
CCM+E Nashville Debuts ALT 98.3
CBS Radio, Townsquare Media Partner To Create The Michigan News Newtwork
Stacey Thomas Appointed Director, Media Integration For CCM+E Philadelphia
In Brief - August 26, 2014
August 25, 2014
Lance Houston Named New PD Of Boston's 101.7 The Bull
In Brief - August 25, 2014
August 22, 2014
eQB NOW
The Week In Review: 8/18-8/22
Chris Edge Adds PD Duties At WDCG/Raleigh
SoundExchange Q2 Digital Radio Report Highlights Digital Radio Transformation
In Brief - August 22, 2014
August 21, 2014
NuVoodoo Ratings Prospect Study Reveals Broadcast Radio Beats Pandora For Music Satisfaction
CBS Radio Adds To Sports Programming Leadership Team
iHeartRadio Survey: Carrie Underwood Music’s Best Female Role Model
In Brief - August 21, 2014
Music News
Bicoastal Made In America Festival A Success
MTV VMAs Spike Sales For Beyoncé and More
Quick Hits: Bruce Springsteen, John Legend, Shakira
The Week In Review: 8/24-8/29
Quick Hits: Chris Brown, Weezer, Miley Cyrus, Brandon Flowers, Paul McCartney, Bob Dylan
Wiz Khalifa Earns First #1 Album, Taylor Swift Debuts At #1 With New Single
Quick Hits: Ariana Grande, Kings of Leon, Lady Gaga, Neil Young
Usher Slowly Revealing Tour Plans
Quick Hits: Bad Boy Records, Ty Dolla $ign, Gerard Way, Bob Dylan
Beyoncé, Miley Cyrus Rule 2014 MTV VMAs
Slipknot Unmasks Details of The Gray Chapter
Quick Hits: Eminem & Shady Records, Ed Sheeran, Prince, Grouplove, Cobra Starship
Quick Hits: Jessie J, Foo Fighters, Mariah Carey & Nick Cannon, Genesis, Fall Out Boy
The Week In Review: 8/18-8/22
Nickelback Signs With Republic Records
FMQB NOW

Jeff Sottolano
Director of Programming
CBS Radio

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!