Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Royalties Deal May Save Internet Radio

By Harry Kimball,  Newser Staff

Posted Jul 7, 2009 5:49 PM CDT
Email

(Newser) – Record labels and the online radio industry have reached a deal on royalties that insiders think will allow the medium to survive, the New York Times reports. Larger sites like Pandora will pay the labels 25% of revenue or up to 14 cents for every song they stream—whichever is higher—and small sites will pay 12% to 14% of revenue. Prior to the deal, rates were set to hit 19 cents per song, and many so-called webcasters said they couldn't survive.

The chief of the nonprofit that manages digital royalties says that while the old system was “appropriate and fair,” the new “experimental approach” will allow “webcasters the opportunity to flesh out various business models.” Pandora's founder was cheered by the lower fees but not entirely satisfied. “I don’t think anyone’s going to look at this and say, ‘I’m really happy, I got everything I want.’”

CDs on display at a music store.
CDs on display at a music store.   (AP Photo)
Customers surf the Internet at an Internet cafe in Beijing.
Customers surf the Internet at an Internet cafe in Beijing.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow

Under the circumstances, my clients are satisfied with this deal. It’s better than the alternative that was on the table. - David D. Oxenford, Internet radio lawyer

« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 2 of 2 comments
2-bits
Jul 8, 2009 12:15 PM CDT
In my experience, Pandora's song selection makes everyone else look pathetic in comparison.
hamsammichs
Jul 8, 2009 1:50 AM CDT
Pandora has never done me wrong. The further you get into a station the better the music gets. Someone needs to research how much downloading and streaming music actually HELPS artists, and thus record labels. I've found out about countless bands on Pandora that I love and have bought albums and gone to concerts because of it.

 
music • Internet • song • webcast • broadcasting • recording industry • internet royalties • Internet radio • record label

More Newser Stories

Songwriters Collaborate by File-Sharing
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne