SoundExchange and the major record labels have just reached an agreement with the large webcasting services over Internet Radio royalty rates, according to a report by Billboard.biz.
Under the agreement which extends to 2010, large commercial webcasters AOL, Live365, MTV, RealNetworks, Pandora and Yahoo! will not have to pay more than $50,000 per service as a per-station or per-channel minimum royalty to webcast sound recordings, according to a source close to the negotiations.
The deal was reached late today in New York during a confidential meeting between representatives from all the major labels and the large digital services, according to the source.
The Copyright Royalty Board (CRB) decision earlier this year set no limit to the $500 per-channel or per-station minimum fee that services must pay to SoundExchange. A decision that caused a massive outcry in the community and many said was the death of Internet Radio.
No final agreement has been reached yet with small webcastersyet, but SoundExchange has offered to carry forward old rates through 2010.
Oh my goodness. A $50,000 cap??? That what the webcasters were originally asking for I believe. Thats a HUGE win for the net. This has to effect the Sat Radio negotiations. Wow!
Ryan - Correct me if I am wrong but this still has no relevance on the royalty per song played rates, correct? Which is the main issue in all of these negotiations.
This is a minor step forward. This agreement has nothing to do with getting new rates for the broadcasters. Until the rates are changed internet radio is at risk. So no big win here.