SoundExchange Offers Lower Prices To Small Fries
Poster: Aron Schatz
Posted on May 23, 2007 at 2:22:35 PM
It seems that SoundExchange is trying to stop the legislation that will stop it from charging ridiculous prices for broadcasting music. They are trying to appease small broadcasters with lower fees. Sorry, I hope the legislation goes through.
Quote
Late last month, Rep. Jay Inslee (D-WA), Sen. Ron Wyden (D-OR), and Sen. Sam Brownback (R-KS) introduced the Internet Radio Equality Act (IREA), which would overturn the CRB's new fee structure. Instead, SoundExchange would continue to receive a percentage of the webcasters' revenue, which would be set at the same 7.5 percent mark paid by satellite radio providers. The IREA was a major factor in SoundExchange's decision to roll back the clock on the licensing fees, which the licensing group admitted in a press release announcing the extension. "Although the rates revised by the CRB are fair and based on the value of music in the marketplace, there's a sense in the music community and in Congress that small webcasters need more time to develop their businesses," said John Simson, executive director of SoundExchange. "Artists and labels are offering a below-market rate to subsidize small webcasters because Congress has made it clear that this is a policy it desires to advance, at least for the next few years."