Should Internet radio stations, cable providers, and satellite radio stations pay the same amount to license the content they provide? What model should be used to determine royalty rates? Why is traditional radio getting a free ride when it comes to royalties?
Representatives from Pandora clashed on Tuesday with SoundExchange, the organization that collects royalties for copyright owners in the music business, over these very issues. Pandora reiterated that current royalty rates could potentially put it out of business, but SoundExchange suggested that Pandora was quite capable of paying its way given projected Internet radio advertising revenues, as well as the success of its iPhone app.
“Webcasters are currently advancing an argument they call parity but that we more accurately call a subsidy," John Simson, executive director of SoundExchange, told the Senate Judiciary Committee.
Artists and owners should not have to “subsidize every Internet business model good, bad or exploitive," Simson said.
Webcasters were given a “huge concession" when Congress allowed them to obtain licenses, he said, and “all they have to do is play the music and pay a fair rate."
Representatives from Pandora clashed on Tuesday with SoundExchange, the organization that collects royalties for copyright owners in the music business, over these very issues. Pandora reiterated that current royalty rates could potentially put it out of business, but SoundExchange suggested that Pandora was quite capable of paying its way given projected Internet radio advertising revenues, as well as the success of its iPhone app.
“Webcasters are currently advancing an argument they call parity but that we more accurately call a subsidy," John Simson, executive director of SoundExchange, told the Senate Judiciary Committee.
Artists and owners should not have to “subsidize every Internet business model good, bad or exploitive," Simson said.
Webcasters were given a “huge concession" when Congress allowed them to obtain licenses, he said, and “all they have to do is play the music and pay a fair rate."
