SaveNetRadio Dismisses SoundExchange’s New Online Radio Royalty Proposal

A new SoundExchange online radio royalty proposal that was launched to address the concerns of small boutique stations, not to mention lawmakers, was met with criticism by SaveNetMusic.org. The combative negotiations have resulted in a prolonged battle that may have to be settled on the hill, something that the Copyright Royalty Board (CRB) and SoundExchange rather not see…

SaveNetRadio, an alliance of online broadcasters, dismissed the modified rate structure, and is looking for a wholescale revision of the royalty rate hikes recently passed by the CRB. SaveNetRadio’s biggest gripe was how exactly is SoundExchange determining which broadcasters qualified for the lowered royalty rates. SaveNetRadio specifcially wants to spare providers like Pandora and Live365 who would most likely go out of business if they land just over the safety line. “Two of the most prominent webcasters, Pandora.com and Live365 are models of industry success but would be bankrupted by the CRB and by the SoundExchange proposals,” SaveNetRadio cried.

However, the move was lauded by A2IM, a lame-duck association that represents the interests of independent labels in the United States. “Small webcasters are active supporters of independent music that consumers demand, but which is not sufficiently played on commercial, non-terrestrial radio,” declared A2IM’s President, Rich Bengloff. “While it is a sacrifice in revenue for our labels and their independent artists at the moment, it’s a sacrifice we’re happy to make.”

Author: FutureMusic

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