SoundExchange Offer Gets Scrutinized
August 22, 2007 at 11:51 AM (PT)
In what will most certainly be the first of several responses to SOUNDEXCHANGE's interim royalty offer to small webcasters (NET NEWS 8/21), RADIO & INTERNET NEWSLETTER founder (and longtime proponent of Net radio) KURT HANSON offered a less-than-ringing endorsement of the deal.
After describing the response as something that only impacts "very small" webcasters, HANSON noted that the offer "would not satisfy those of us who have participated in the CRB process and have been negotiating with SOUNDEXCHANGE , or, for that matter, any webcaster who hopes to build its company into something more substantial -- presumably most "small" webcasters that are larger than one-person operations -- SOMAFM, RADIO PARADISE, GOTRADIO, BIG R RADIO, LOUD CITY and many others."
it will primarily benefit 'some small companies who do not expect to substantially grow their businesses between now and 2010'
He inferred that the SOUNDEXCHANGE offer is intended to show Congress that it is reaching out to all small webcasters, it will primarily benefit "some small companies who do not expect to substantially grow their businesses between now and 2010." In fact, "yesterday's offer specifically says that the percentage of revenue payment only covers those artists who are SOUNDEXCHANGE members... a small webcaster who signs the deal and plays music by artists and/or labels who are not SOUNDEXCHANGE members would, on top of the percentage of revenue, also have to pay SoundExchange the CRB-determined rates for those tracks."
For the entire response, click here.