The 7.5% Solution: Good For Cable Radio ... Ditto Internet Radio?
November 5, 2007 at 11:57 AM (PT)
The SAVENETRADIO Campaign, representing Internet radio's interests, is jumping on the news that label lobby SOUNDEXCHANGE has formally proposed that cable radio services such as MUSIC NOW pay royalties between 7.25% and 7.5% of their revenue to content providers and its creators from 2008 to 2012. The proposal mirrors royalty rates endorsed by over 140 Congressional co-sponsors of the Internet Radio Equality Act -- which was rejected by SOUNDEXCHANGE and the RIAA.
"Perhaps this agreement means that SOUNDEXCHANGE agrees that 7.5% of revenue is a fair rate; they just prefer that the rate not be legislated," SAVENETRADIO spokesperson JAKE WARD said. "The Internet radio industry has never asked for more than royalty parity and an opportunity to grow their businesses to the benefit of artists, consumers, and even record labels. Perhaps SOUNDEXCHANGE's agreement that cable radio should pay 7.5% of revenue is a precursor to an equivalent offer for Internet radio services. It is hard to imagine that recording industry interests would continue to reject Congressional legislation and webcasters' efforts to set fair royalty rates while simultaneously agreeing to the same standard for cable radio services."