SoundExchange caps “per channel” fees
From the IHT:
A music industry group Thursday said it would cap “per channel” fees for major Internet radio companies streaming music on multiple channels.
SoundExchange, which collects royalties from Webcasters and distributes them to artists and record labels, said it would limit fees — at $50,000 a year — for online radio station companies that offer more than 100 channels to customers.
A decision made earlier this year by copyright judges meant that webcasters had to pay higher royalty fees and $500 per channel. Of course, with the power of web, many startups and small companies can provide hundreds of channels for consumer’s benefit. The decision these judges made could have brought down any internet radio revolution.
SoundExchange’s decision is a step in the right direction, which will allow small companies more room to grow and place fewer economic restrictions on the development of multiple channels. This is great for musicians who are building a career, as it means more mediums for promotion across the board. Bringing down internet radio is not good for the small bands who are working their asses off to get some promotion going, so we should all thank SoundExchange.
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