Copyright holders announced a deal Monday regarding royalty rates for local radio stations that broadcast their shows on the Internet.
The National Association of Broadcasters (NAB) and SoundExchange, which governs the music industry's royalty rates, reached a six-year deal with radio stations running Web channels.
Under the agreement, rates for simulcasts or web channels operated by local radio stations are reduced in 2009 and 2010 by approximately 16 percent, but will increase through 2015 - from $0.0015 per streamed sound recording in 2009 to $0.0025 per stream by 2015.
“Because of the explosive growth of music on the Internet, this is good news for everyone involved in music - from artists to labels to broadcasters and to fans," John Simson, executive director of SoundExchange, said in a statement. “It provides radio stations more opportunity to grow their online businesses in a stable business environment. Furthermore, it gives artists and copyright holders the opportunity to have more of their music played, while being fairly compensated, in more places as radio services expand their offerings on the Internet."
NAB also reached separate agreements with individual record labels that waive certain statutory format restrictions. This would, for example, allow certain artists to be played more often during a four hour period.
The National Association of Broadcasters (NAB) and SoundExchange, which governs the music industry's royalty rates, reached a six-year deal with radio stations running Web channels.
Under the agreement, rates for simulcasts or web channels operated by local radio stations are reduced in 2009 and 2010 by approximately 16 percent, but will increase through 2015 - from $0.0015 per streamed sound recording in 2009 to $0.0025 per stream by 2015.
“Because of the explosive growth of music on the Internet, this is good news for everyone involved in music - from artists to labels to broadcasters and to fans," John Simson, executive director of SoundExchange, said in a statement. “It provides radio stations more opportunity to grow their online businesses in a stable business environment. Furthermore, it gives artists and copyright holders the opportunity to have more of their music played, while being fairly compensated, in more places as radio services expand their offerings on the Internet."
NAB also reached separate agreements with individual record labels that waive certain statutory format restrictions. This would, for example, allow certain artists to be played more often during a four hour period.
