SoundExchange and CPB Reach an Accord on Royalties

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accordRoyalties have been at the center of numerous conversations within the radio industry, and rightfully so. It is a bottom line issue that directly impacts the cost of running a radio station, and it is also one that is justifiably important to the all parties involved.

Today marked a new accord relating to the royalty issue as pertains to Internet streaming. The following comes via PaidContent.org: The Economics of Content:

Another week, another agreement on web streaming royalty rates. The Corporation for Public Broadcasting has reached a deal with SoundExchange, which collects royalties on behalf of the music industry, to compensate artists and rights owners whose content is streamed on the web by public radio stations. The CPB will pay SoundExchange at least $2.4 million between 2011 and 2015. That amount will go up, if “usage exceeds expectations.” That’s below market value, in a nod to the “special public service mission and non-commercial nature” of public radio, according to a statement the two parties issued.

As these issues slowly get resolved, we will finally be able to develop a an idea of the media playing field in the Internet age. Yes, things will continue to change, but the issues we face now are the first round and the most fundamental. We are literally setting the stage upon which all must play.

Things do seem to be reaching consensus. Agreements have been reached recently between SoundExchange and College Radio, Sirus, the National Religious Broadcasters Music License Committee, and the so called “pureplay” streaming services like Tim Westergren’s Pandora.

Let us hope that we see resolution to this array of matters soon.

Image: orinrobertjohn / CC BY-SA 2.0
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