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
Study: Radio Dominates In Connected Cars
February 17, 2017
Study: Women to Radio: I Love You, But….
iHeartMedia Fort Myers Adds New Nighttime On-Air Hosts Lulu & Lala On Y100.1
Entercom Los Angeles Extends KSWD's "Uncle Joe'Benson
February 16, 2017
Study: Who Do Women Love Most – Radio or Pandora?
Prince Streaming Activity Explodes
Kathy Romano To Bring "Her Story" To WBEN/Phiadelphia
February 15, 2017
CBS Corp Revenue Up in 2016, Radio Now "Discontinued Operations"
Z90 "EPIC 48 2.0" Wraps, Includes Meeting Lady Gaga At The Big Game
MIW Radio Group: 2016 Gender Analysis
February 14, 2017
BuzzAngle Music: 2017 GRAMMYs Impact
Universal Music Publishing Group Appoints Walter Jones VP/Creative
The Conclave To Honor John Gehron With Rockwell Award
Report: Millennials Don't Hate Radio
Bob Garrett Memorial Fund
February 13, 2017
Adele Dominates 59th Annual Grammy Awards
Todd "Carson" Zarnitz Named PM Drive Host for KKRZ/Portland & KPWK/Seattle
UMG Relaunches Polygram Entertainment
WRVW/Nashville To Present “Live. Life. Love: A Concert for Suicide Prevention”
CMG Miami Names Michael Baisden Afternoon Drive Host At WHQT
February 10, 2017
Nielsen Reports Increased Revenue in 2016, Q4
Pandora Revenue and Net Losses Both Up in Q4, 2016 Full Year Report
February 9, 2017
CBS Radio Chicago Names Greg Solk OM/PD At WXRT & WJMK
Music News
Fifty Shades Darker Soundtrack Debuts Atop Billboard 200
James Brown's Drummer Clyde Stubblefield Dies
Quick Hits: The Roots Picnic, Ringo Starr & Paul McCartney, Lana Del Rey
Republic Records, ZXL Music & The Grimmie Family To Release New Christine Grimmie Music
Linkin Park Announce New Album, Release Single "Heavy"
Migos Joins With Motown & Capitol Records
Quick Hits: Beyonce, Adele, Metallica, Michael Jackson, OneRepublic
Katy Perry, Ed Sheeran, The Chainsmokers, Shawn Mendes, Noah Cyrus, Bruno Mars Set To Perform At The 2017 iHeartRadio Music Awards
Future Announces New Album Out Friday
Quick Hits: Pitbull, Lorde, G-Eazy, Camila Cabello
Quick Hits: Katy Perry, The Chainsmokers, Chance The Rapper
Prince's Early Catalog Comes to Streaming Services
Metallica Announces WorldWired Tour
Quick Hits: DJ Khaled / Beyoncé / Jay Z, Al Jarreau, WayHome Festival
Katy Perry Releases New Single "Chained to the Rhythm"
FMQB NOW

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!