The National Association of Broadcasters (NAB) hates the idea of paying recording royalties on terrestrial plays. But according to details shared with Digital Music News late Monday, the NAB board of directors is still very interested in forging a sweetheart deal with the recording industry. In fact, the group is planning to float a formal compromise to musicFirst later today.
So what would this deal include? According to sources, this will not be a secret deal—instead, the NAB wants any resolution blended into formal legislation. The details contained in an agreed-upon “term sheet" would include a performance fee of between 0.25 and 1 percent of station revenues, though that rate would be predicated on winning mandatory inclusion of FM radio chips in upcoming mobile devices.
A phase-in period would be agreed upon, and when feasible, HD-compatible chips would also be required. In fact, the revenue percentages would depend upon the overall penetration of radio chips. Once a 75 percent penetration is achieved, stations would pay the full one-percent of revenues, according to details learned.
But wait—there's more. The NAB is also trying to effectively eliminate the Copyright Royalty Board from any rate proceedings related to terrestrial broadcasters—and that includes terrestrial or digital streams. In fact, that would be a requirement for paying recording fees on terrestrial broadcasts.
On top of that, the NAB also appears to be angling for reduced royalty requirements on digital transmissions, though the aspects of that arrangement are still unclear. More details as they become available; a formal delivery of the resolution is expected this afternoon.
So what would this deal include? According to sources, this will not be a secret deal—instead, the NAB wants any resolution blended into formal legislation. The details contained in an agreed-upon “term sheet" would include a performance fee of between 0.25 and 1 percent of station revenues, though that rate would be predicated on winning mandatory inclusion of FM radio chips in upcoming mobile devices.
A phase-in period would be agreed upon, and when feasible, HD-compatible chips would also be required. In fact, the revenue percentages would depend upon the overall penetration of radio chips. Once a 75 percent penetration is achieved, stations would pay the full one-percent of revenues, according to details learned.
But wait—there's more. The NAB is also trying to effectively eliminate the Copyright Royalty Board from any rate proceedings related to terrestrial broadcasters—and that includes terrestrial or digital streams. In fact, that would be a requirement for paying recording fees on terrestrial broadcasts.
On top of that, the NAB also appears to be angling for reduced royalty requirements on digital transmissions, though the aspects of that arrangement are still unclear. More details as they become available; a formal delivery of the resolution is expected this afternoon.
