In a move that is sure to bring more over the air broadcasters onto the internet playing fiels, ASCAP has won approval for slightly more than $1.7 billion in royalty payments for music aired over the radio and streamed on the Web. The deal between ASCAP and the Radio Music License Committee, which represents 12,000 U.S. commercial radio stations, was approved by the courts Monday. The flat fee replaces the current royalty payment system that pays ASCAP about 1.6% of a station’s gross revenues.
“Over $1.7 billion, fixed through 2009, indicates the true economic value of our members’ music to the radio industry,” ASCAP senior vp and director of licensing Vincent Candilora said. “We were pleased to have reached an agreement that establishes significant income increases for our members that they can count on well into the future and provides the radio industry with the planning information and simplified administration it views as critical for business success.”
