Internet radio, content owners agree
September 24th 2008
Slyck News reports that the RIAA and internet broadcasters have reached agreements covering royalties and so-called performance fees.
"Innovative music services will enjoy a more stable business environment because of this agreement and that will benefit music fans and music creators alike," stated Jonathan Potter, executive director, Digital Media Association (DiMA), which represents most internet broadcasters. "DiMA is particularly pleased with the agreement to end litigation and threats of litigation involving several of our member companies, so that they can focus on building innovative businesses that can effectively fight piracy, the music industry's greatest threat."
The new agreement appears to alleviate many of the fears associated with the 300%-1200% increase previously approved by the [Copyright Royalty Board], as the agreement tries to be more flexible for smaller broadcasters. Instead of shelling out a massive royalty for every song broadcast, the station operator will be charged 10.5% of revenue per year.
Previously, Pandora, one of the larger and more popular music streaming services, said it would shutdown rather than pay CRB-mandated royalties that would eat up 80 to 90 percent of revenues.
Editor's note: So, internet radio lives and won't be killed off tomorrow due to capricious greed (RIAA) or a brutality indifferent bureaucracy (CRB). Still, what this means for smaller broadcasters isn't clear as their not direct parties to the above agreement.
