Streaming Royalties May Affect Terrestrial Radio

June 25, 2008


June 24, 2008 - According to an article by Tim Siglin on streamingmedia.com, terrestrial radio may soon be brought into the fight over royalties. Almost a year ago we reported on the Copyright Protection Board's decisions to enforce a set of performance royalty rates suggested by Sound Exchange and lobbyists for the RIAA. These were retroactive and focused on Internet radio broadcasters.

According to the story, since Sound Exchange took action against Internet radio providers, in the last 12 months, it has "successfully negotiated a royalty performance fee with cable and satellite radio providers, at a rate significantly lower than the rate it proposed for Internet radio."

Siglin writes, "Sound Exchange has also been using the CPB's ruling on Internet radio and its deals with satellite and cable radio providers to go after its true target: the traditional terrestrial radio station. In the last few months, two additional bills have been introduced that address the issue of performance fees for traditional radio, a target the recording industry has been after since the 1930s when Paul Whiteman, a big band leader, lost a court appeal against radio stations for playing records that his record label had marked 'not authorized for radio play.'"

The two bills are in opposition, one opposing new performance fees for radio stations and the other supporting a performance fee. Representative Mike Conway who introduced the bill opposed to the fees along with Representative Gene Green, said, "The performance fee would disrupt the mutually beneficial relationship between local radio stations and recording industries."

To read Siglin's full article, visit streamingmedia.com.



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