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Print 28 comment(s) - last by dluther.. on Jul 19 at 12:16 AM

SoundExchange puts a stop on its royalty hike and decides to hash a new plan with webcasters

Several days ago, DailyTech reported the online radio industry was about to meet its end when the D.C. Circuit Court of Appeals declined to put a stop on a new royalty scheme. Championed by SoundExchange, the new royalty scheme increases money flow for artists and labels.

Despite the court decision to go ahead with the new scheme, SoundExchange announced the new royalty scheme will be postponed, without any indication it will be continued. According to SoundExchange Executive Director Jon Simson, the group is in debate with online radio stations on an alternative plan, one that will allow them to continue their operation while compensating artists and labels.

The outcry by online radio stations was heard several weeks ago when a large number of stations banded together to protest against SoundExchange. While the government in large ignored the complaints, SoundExchange did listen -- even though it was the last entity on any stations' mind that would listen.

Pandora, one of the four largest online radio companies was one of many stations that took a stance against SoundExchange. Pandora founder Tim Westergren said users who called into Congress to voice against the changes all helped.

"This is a direct result of lobbying pressure, so if anyone thinks their call didn't matter, it did. That's why this is happening," said Westergren in a blog on Listening Post.

SoundExchange said it will now work closely with webcasters, large and small to form a new plan.


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I don't mean to spark a political debate, but...
By ryedizzel on 7/16/2007 7:27:42 PM , Rating: 2
I am a regular listener of online radio (mostly DI.fm) and I was one of the people that actually took their time to contact their local senators on the day of the silence. I'm happy to see SoundExchange supposedly listened, yet saddened to see the government as a whole ignored it. Makes you doubt that we truly live in a democratic country that run by "the people".




By novacthall on 7/16/2007 10:36:24 PM , Rating: 2
Not to be a nitpick, but the US is a republic. Your representatives are democratically elected, but the country is run by the elected few. Ideally, the representatives are run by "the people" (making the country run by the people by proxy), but it doesn't always work out that way.

On topic, good for you for contacting your representative. You went a lot farther than most.


By theapparition on 7/17/2007 7:52:07 AM , Rating: 2
Yeah, very few realize that we are not governed by democracy. We are, a democratic republic.

Good for contacting your local representatives. I sent letters as well. I've never listened to online radio, but think they should be governed by the same agreements as terrestrial radio and satelite.


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