Webcasters & SoundExchange Reach Agreement On Online Radio Royalties
SoundExchange and pure play Webcasters have reached an agreement regarding online radio performance royalties that will benefit independent labels and artists while also allowing the webcasters that give independents the most airplay and exposure the ability to grow their businesses, in which revenues independents will share.
The resulting pure play webcasting rates compensate the artists who create the music and the music labels that invest in that music creation on a fair and equitable basis, unlike traditional AM/FM radio which currently pays performers nothing when they play their music. At the same time these rates are also fair to the pure play broadcasters, most of them small businesses. The settlement will allow the online broadcasters to continue to stream music to listeners and still make a profit. These pure play webcasters are vital to independent artists and labels as they play almost triple the percentage amount of independent music compared to that played by traditional AM/FM radio, in response to the growing consumer demand for independent music. As consumer listening continues to shift to the internet these webcasters will have an ever increasing market share and audience.
For all artists and music labels performance income continues to become more important as replacement income for recorded music sales as consumer consumption patterns shift from buying music to listening to music. For independent artists and labels agreements like this settlement ensures independents can continue to reach our growing number of fans and be compensated fairly and on the same basis as all creators, regardless of the size of the artist or music label, so we can continue to create new music.
