SoundExchange: The Sky Isn't Falling
April 30, 2007 at 11:47 AM (PT)
SOUNDEXCHANGE continues its crusade against SAVENETRADIO, saying that it has reviewed 2006's royalty payment statistics and found that 82% of 2006 royalties were paid by the 10 largest webcasters, which make up 4% of all paying services. In contrast, small webcasters paid less than 2% of all royalties.
"The big webcasters are painting a highly distorted picture in an effort to maintain extremely low rates and high profit margins," SOUNDEXCHANGE said in a press release "These facts are contrary to alarmist claims by opponents of the COPYRIGHT ROYALTY BOARD who say that rates are too high. Further, the review shows that webcasting is growing dramatically."
SOUNDEXCHANGE Exec. Dir. JOHN SIMSON said, "Now that SAVENETRADIO's JAKE WARD has publicly admitted that SAVENETRADIO is a front for large webcasters and was launched by the DIGITAL MUSIC ASSOCATION (DiMA), the organization that represents mega-corporate interests like YAHOO! and AOL, the veil has been lifted and the real beneficiaries of recently introduced legislation have been confirmed."
SOUNDEXCHANGE COO BARRIE KESSLER said, "There's no question that these statistics show that critics of the CRB decision are playing a game of 'Chicken Little.' They are definitely claiming 'the sky is falling,' but the facts show absolutely that it's blue skies ahead for webcasters, artists and labels."