Internet Broadcast Talks Make Progress

The fight over internet broadcast royalty rates seems to finally reaching a conclusion. 

Yesterday, SoundExchange agreed to cap "per channel" fees for larger internet radio companies at $50,000 a year thus saving Pandora and others who offer tens of thousands of streams. In return the DiMA says broadcasters will begin better recording practices within 6 months.

“That $500 per channel minimum was kind of absurd and the truth is everybody knew that. But the real meat of this is the (royalty) rate, which has not been figured out yet," said Pandora Founder Tim Westergren.


Earlier this week SoundExchange dropped a demand to end mp3 streaming and offered smaller broadcasters a percentage of profits royalty rate deal through 2010. Some stations expressed dissatisfaction with the rate increase and a provision that would seemingly "double tax" a broadcaster who grew above a $1.25 million cap within a reporting period.  But at least both sides appear to be getting closer to a resolution.