SoundExchange Talks to Webcasters About a New Royalty Plan
July 16, 2007 5:04 PM
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SoundExchange puts a stop on its royalty hike and decides to hash a new plan with webcasters
Several days ago,
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 SoundExchang
e. 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
SoundExchange said it will now work closely with webcasters, large and small to form a new plan.
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RE: only in america
7/17/2007 1:55:56 PM
Moving out of the country isn't a solution at all. A lot of us have jobs other then our hourly, daily, weekly webcasts.
I personally am not in it for the money. I lose money if anything. I don't charge anyone for anything. I don't advertise. In fact I have never made real money from it. I just play music for folks who seem to enjoy it. There are a ton who DJ for fun. Its like throwing a party every weekend. I get a lot of the same listeners and we get to know each other and build relationships. It can be a wonderful thing.
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
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