SoundExchange and Large Internet Music Broadcasters Reach Agreement

Digital Music News reports that large internet broadcasters represented by DiMA and SoundExchange reached a setllement last week that will keep at least the larger internet music broadcasters in the business.

Paul Resnikoff in Digital Music News:

“A contentious internet radio royalty battle calmed a bit this week, thanks to a fresh agreement involving larger broadcasters. SoundExchange and broadcasting consortium DiMA announced a number of concessions Thursday, including those related to minimum station fees, reporting, and piracy prevention. Specifically, the groups agreed to establish an annual ceiling of $50,000 per provider, based on a $500 per-station fee. Additionally, DiMA members agreed to supply detailed playlists to SoundExchange, a move that greatly eases administrative royalty efforts.

The organizations also announced the formation of a special committee to explore technologies that would prevent stream-ripping. Currently, a number of off-the-shelf products allow music fans to convert online radio streams into discrete download collections, though piracy levels appear manageable at this stage.

DiMA represents providers like AOL, Yahoo, Apple, and RealNetworks, a critically important component of the internet broadcasting community. That makes the latest accords important, though the parties have yet to finalize discussions related to royalty rates themselves. “This agreement marks an important first step in the internet radio royalty negotiation process,” said DiMA executive director Jonathan Potter. “We look forward to the next step of negotiating the royalty rates that will allow for the growth of the internet radio industry, a platform for music discovery for consumers.””