Eric Rhoads' Blog
NAB, SoundExchange Reach Agreement On Streaming Rates
WASHINGTON -- February 16, 2009: The NAB and SoundExchange have come to an agreement on Internet streaming rates for local radio stations that simulcast their programming online or create new Internet-only stations. The deal was made under the Webcaster Settlement Act of 2008 on covers all copyrighted, commercially released musical performances.
The new agreement keeps the per-performance rate structure but reduces the rates set by the Copyright Royalty Board for 2009 and 2010 by about 16 percent and establishes rates for 2011-2015. This year's rate is $0.0015 per streamed recording, moving up to $0.0025 in 2015. The CRB rates were $0.0018 for 2009 and $0.0019 for 2010.
Additionally, the NAB said it has reached agreements with individual labels to waive some restrictions that apply to Internet programming, including allowing some artists to be played more often within a four-hour period.
"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," said SoundExchange Exec. Director John Simson. "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 EVP Dennis Wharton said, "Today's announcement provides local radio stations with the ability to enhance their local service with an online component, boosting listeners' access to music, local news, and information. By ensuring the continued viability of Internet streaming for America's radio stations, today's agreement further strengthens the relationship between free, local radio and our 235 million weekly listeners."
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(2/17/2009 6:04:32 PM) This is just another ripoff for the small hometown broadcaster. Maybe I should turn off the streaming and see if they protest that action. |
| - Ralph Turpen |
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(2/16/2009 5:58:15 PM) This equates to about $11 (in 2009) scaling to $18 (in 2015) per concurrent listener per month (12-12 AQH persons) for their internet broadcasts... or in listener hours, 1.5 cents to 2.5 cents per listener hour per month for internet streams. Those numbers don't sound like a good deal for broadcasters who want to grow their streaming audiences. |
| - Rusty Hodge |
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