Webcaster Agreement
SoundExchange reached an agreement yesterday in a compromise on the royalty rates imposed on web radio stations. The agreement places a cap on total payments by webcasters, and the two sides have agreed to approach the Copyright Royalty Board and request that the terms of the agreement be adopted by that Board, which would make the agreement apply industry-wide.
One part of the agreement stands to have a positive impact on artists and small indie labels. The webcasters have agreed to provide full, track-by-track listings of all material played. Currently, they are only required to provide a sampling of playlists, from which SoundExchange determines royalty rates paid to artists based on a statistical formula. Smaller market artists have long been concerned that they may be short-changed by this method.
The change in reporting may have an impacty on royalty payments, that remains to be seen, but the full lisitings can definitely benefit the artists with less airplay because it will make it possible for them to track airplay much more accurately, and thus plan their marketing and touring much more effectively.
Story in LA Times
SoundExchange Press Release
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