Deal Reached On Web Streaming Rates
AM and FM radio stations that simulcast programming over the Internet or that create new stand-alone Internet stations reached a deal with digital royalty collector SoundExchange on Monday to provide discounts on previously set rates for 2009 and 2010 and establish rates for 2011-2015. Under the agreement, rates for simulcasts or Web channels operated by local stations are reduced for the first two years by about 16 percent then gradually increase through 2015 -- from $0.0015 per streamed sound recording in 2009 to $0.0025 per stream by 2015.
The National Association of Broadcasters has reached separate deals with individual record label groups that waive certain statutory format restrictions allowing, for example, certain artists to be played more often during a four hour period. The agreement was reached under the authority of the Webcaster Settlement Act, which passed Congress last September, and covers simulcasts over the Internet of all copyrighted commercially released musical performances. Meanwhile, the same parties involved in the agreement have just begun a battle on Capitol Hill over performance royalties that the music industry wants AM and FM radio stations to pay.
"Because of the explosive growth of music on the Internet, this is good news for everyone involved in music -- from artists to labels to broadcasters and to fans," SoundExchange Executive Director John Simson said in a press release. NAB spokesman Dennis Wharton said the arrangement "provides local radio stations with the ability to enhance their local service with an online component, boosting listeners' access to music, local news and information." The Webcaster Settlement Act was sponsored by Rep. Jay Inslee, D-Wash., and Sen. Ron Wyden, D-Ore.
Still to come: settlements between SoundExchange and small commercial webcasters; religious broadcasters; and members of the Digital Media Association.
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