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# Digital Media Association Rejects SoundExchange’s “Stay Of Execution”
- URL: https://www.hypebot.com/digital-media-a/
- Published: 2007-06-30T05:05:42.000Z
- Updated: 2007-06-30T05:05:42.000Z
- Description: New regulations to go into effect on July 15th require each webcasters to pay a $500 minimum advance on royalties "per station or channel". Do the math and you’ll see. Continue reading [https://www.hypebot.com/hypebot/2007/06/digital-media-a.html]
- Author: Bruce Houghton
- Tags: Streaming, #wp, #wp-post, #Import 2026-01-21 11:06

New regulations to go into effect on July 15th require each webcasters to pay a $500 minimum advance on royalties "per station or channel". Do the math and you’ll see that a service like Pandora or Last.FM who create thousands of custom streams would easily be put out of business. **Yesterday in a press release** **SoundExchange offered a cap of $2500 against future royalties no matter how many streams a broadcaster offered.**

But in a scathing response, Jonathan Potter, Executive Director of the **Digital Media Association said**,  
"DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented to us in writing, which would terminate in 2008.  
**Any offer that doesn’t cover the full term is simply a stay of execution for Internet radio."** 

"The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth," he continued. "A billion-dollar "minimum fee" is equally absurd in 2006, 2007, 2008, 2009 or 2010\. It should be eliminated – period.  
DiMA is disappointed to have to issue this statement; **we would prefer to resume negotiating important issues directly with our counterparts rather than through press releases."**