SoundExchange Inks Royalty Deal With Large Webcasters – Small Guys Waiting For Congress
SoundExchange has reached an accord with the largest online broadcasters for per stream royalty payments. Under the new agreement, which lasts until 2010, SoundExchange will cap the total that the largest commercial broadcasters will have to pay at $50,000 for all streams, instead of $500 per channel. Prior to this deal, the Copyright Royalty Board (CRB) stated that there would be no limit to the $500 per-channel or per-station minimum fee that services must pay to SoundExchange.
In addition, the big web broadcasters will not be mandated to incorporate technology to prevent the streamed music from being ripped by listeners at this time, but will discuss options for the future.
The decision comes on the heels of SoundExchange offering small webcasters a deal that would maintain the old rate structure through 2010, but has not been well received.