NAB Online Royalty Proposal Rejected
The NAB (National Association of Broadcasters) made a proposal to SoundExchange regarding the proposed royalties netcasters will have to pay to continue to play music online about three months ago. Apparently, SoundExchange, which represents the copyright holders to the music, apparently rejected the offer.
The NAB claimed its offer would allow SoundExchange to compensate its constituents while changing an amount that would allow online radio providers to continue to grow.
BetaNews reports on an open letter sent to SoundExchange by NAB that said: “The detailed proposal presented to you and SoundExchange staff sought to achieve a number of important objectives, such as: 1. To encourage greater participation by radio stations in Internet streaming than would otherwise be possible under the misguided CRB rates; 2. To enable greater radio station streaming activity, allowing revenue to artists through SoundExchange to grow beyond that achievable under the CRB rates; and 3. To address ancillary aspects to streaming above and beyond the CRB decision that would be beneficial to musicians and SoundExchange.”
SoundExchange claims it has settled with many of the larger webcasters, but it has not been made public which ones have allegedly reached agreements.