SoundExchange Quarterly Payout Hits $122.5 Million, Largest Ever
Amidst a growing battle over digital broadcast royalty rates, SoundExchange today fired the most powerful gun in it's arsenal: the largest quarterly payments from non-interactive digital music services to artists and labels ever. The third-quarter distribution of $122.5 million announced today means that payments have reached $326.9 million in the first three quarters of 2012 and are already $30 million greater than all of 2011.
Non-profit SoundExchange collects and distributes
performance royalties from non-interactive digital music services for artists
and record labels. Since inception,
SoundExchange has paid more than $1 billion in royalties to the creators of
music. Now Pandora and other digital broadcasters are pushing for cuts that could mean the payments could drop by as much as 80%, at least temporarily. Late last week, 125 major artists signed an open letter opposing the plan.
“This distribution represents yet another record-setting
quarter for SoundExchange, but means so much for the recording artists and
record labels that rely upon this growing revenue stream. Musicians and rights
owners – both superstars and rising stars – have come to depend on these
royalty payments,” said Michael Huppe, president of SoundExchange.
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