Music industry organization SoundExchange is offering a new deal to internet radio broadcasters who say upcoming royalty hikes will kill online broadcasting.
The proposed compromise puts a ceiling on the new set of hefty royalty rate hikes that takes effect July 15. Under SoundExchange's latest olive branch, royalties would be capped at $2,500 per service, regardless of the overall number of stations or channels they are Streaming.
The Digital Media Association, the trade group representing internet broadcasters, said it will accept the proposal if the cap was extended to the entire term of the CRB's ruling, which would terminate in 2010. Currently the rate cap proposal ends in 2008.
"Any offer that doesn't cover the full term is simply a stay of execution for Internet radio," DiMA said in a release. "The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth. A billion-dollar 'minimum fee' is equally absurd in 2006, 2007, 2008, 2009 or 2010. It should be eliminated – period."
Web radio broadcasters have been fighting the royalty hike tooth-and-nail since it was first revealed. Two weeks ago, more than 10,000 US web radio broadcasters canceled their usual programming in a "day of silence" protest.
Source: The Register
The Digital Media Association, the trade group representing internet broadcasters, said it will accept the proposal if the cap was extended to the entire term of the CRB's ruling, which would terminate in 2010. Currently the rate cap proposal ends in 2008.
"Any offer that doesn't cover the full term is simply a stay of execution for Internet radio," DiMA said in a release. "The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth. A billion-dollar 'minimum fee' is equally absurd in 2006, 2007, 2008, 2009 or 2010. It should be eliminated – period."
Web radio broadcasters have been fighting the royalty hike tooth-and-nail since it was first revealed. Two weeks ago, more than 10,000 US web radio broadcasters canceled their usual programming in a "day of silence" protest.
Source: The Register
