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 donít 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 donít go to big-name acts. "Weíre not just paying the Lady Gagas of the world, weíre 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. "Itís 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
iHeartMedia Connecticut Names Zac Davis PD of WKSS & WKCI
iHeartMedia Phoenix Appoints Spivey And Wolff To APD Posts
Former Dial Global/Westwood One Execs Launch DGital Media
Radio Promotion Executive Bridget Herrmann Joins Crush Music
Sinclair Broadcast Group And iHeartMedia Join Forces For UNCF "An Evening Of Stars"
In Brief - May 27, 2015
May 26, 2015
Michelle Jubelirer Promoted To COO, Capitol Music Group
CBS Radio Phoenix Names Tim Richards VP/Programming
Demi Lovato, Nick Jonas & Phil McIntyre Announce Formation Of Safehouse Records
Free Registration Offered To Radio Show's First-Ever Student Scholars Program
In Brief - May 26, 2015
May 22, 2015
Hubbard Radio Ups Jeremy Sinon To Corporate Digital Director
The Week In Review: 5/18-5/22
KSZR/Tucson Becomes Classic Hip Hop, 97.5 The Vibe
In Brief - May 22, 2015
May 21, 2015
President Obama To Renominate Jessica Rosenworcel As FCC Commissioner
Herndon Hasty Joins Cumulus Kansas City As VP/Sales
In Brief - May 21, 2015
May 20, 2015
Bruce Lundvall, Longtime Blue Note President, Dies At 79
Zach Mullins Named Digital Sales Manager For Cox Media Group/Atlanta
Quality Control Music Signs Joint Venture With Capitol Music Group/Motown Records
Spotify Adds Video Content, Podcasts
In Brief - May 20, 2015
May 19, 2015
iHeartCommunications To Pay $1M For Misusing EAS Tones During The Bobby Bones Show
Nielsen Study: Radio Delivers Decision-Makers For American Family Insurance
Music News
Twenty One Pilots Hit #1 On Billboard 200
Quick Hits: U2, NiFi Festival, Azealia Banks
A$AP Rocky Drops Early Release
Quick Hits: Neil Young, Of Monsters and Men, Chris Cornell, Boston Calling festival, Rob Thomas
Adam Lambert Unveils Two New Tracks
Academy Award-Nominated Actress Hailee Steinfeld Inks Record Deal With Republic Records
Quick Hits: Taylor Swift, Eminem, Enrique Iglesias, Slayer
The Week In Review: 5/18-5/22
Quick Hits: Taylor Swift, Madonna, Little Mix, Roger Waters
Pitch Perfect 2 Comes In At #1
Quick Hits: Foo Fighters, The Rolling Stones, Kanye West, Five Finger Death Punch, Amy Winehouse, Riot Fest
FMQB Photo Pass: MMRBQ 2015
Quick Hits: Sam Smith, B.B. King, Life Is Beautiful festival, Bullet For My Valentine
Taylor Swift Cleans Up at Billboard Music Awards
Chris Brown, Nicki Minaj Lead 2015 BET Awards Nominees
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!