The NAB has come to terms with SOUNDEXCHANGE on a comprehensive agreement on Internet streaming rates for local radio stations that simulcast programming over the Internet or that program new stand-alone Internet stations. The new deal offers discounts on previously-set rates for 2009 and 2010 and establishes rates for 2011-2015, providing stations with an enhanced ability to serve listeners through online platforms.
Furthermore, NAB has reached separate agreements with individual record label groups that waive certain statutory format restrictions allowing, for example, their artists to be played more often than the restrictions contained in the DMCA. Those restrictions make it currently illegal to stream such programming features as “Triple-Play Thursdays” or “Album Sides Weekend.”
Under the agreement, rates for simulcasts or web channels operated by local radio stations are reduced in 2009 and 2010 by approximately 16%, then gradually increase from $0.0015 per streamed sound recording in 2009 to $0.0025 per stream by 2015.
Rates for the 2006-2010 term had already been determined by the Copyright Royalty Board in 2007. The new rates for 2009 and 2010 will save broadcasters around 16% compared to the CRB rates; however, the NAB did agree to roughly 10%/year price increases thereafter.
By agreeing on rates through 2015, NAB members will not have to spend the hundreds of thousands of dollars in legal fees that would be required to participate in a Copyright Royalty Board rate determination proceeding for the 2011-2015 period.
"Because of the explosive growth of music on the Internet, this is good news for everyone involved in music - from artists to labels to broadcasters and to fans," SoundExchange Exec. Dir. JOHN SIMSON said. "It provides radio stations more opportunity to grow their online businesses in a stable business environment. Furthermore, it gives artists and copyright holders the opportunity to have more of their music played, while being fairly compensated, in more places as radio services expand their offerings on the Internet."
"Today's announcement provides local radio stations with the ability to enhance their local service with an online component, boosting listeners' access to music, local news and information," NAB EVP DENNIS WHARTON said. "By ensuring the continued viability of Internet streaming for America's radio stations, today's agreement further strengthens the relationship between free, local radio and our 235 million weekly listeners."
At this point, we are still awaiting word of settlements between SoundExchange and various other webcaster groups, like Small Commercial Webcasters Group, religious broadcasters and various DiMA members (e.g., Yahoo!, MTV, and Pandora).
CMB is watching this issue closely and will let you know when information is available on the religious broadcasters agreement.