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Recording Industry to Webcasters: Let’s Make a Deal!

May 23, 2007, 2:27 pm

Plenty of college-radio-station managers have fretted over a recent royalty-fee hike that seemed to threaten small stations' ability to stream their music online. But small broadcasters might get a reprieve after all.

SoundExchange, the group that collects royalty fees for most record companies, will let small stations pay "below market" Webcasting rates through 2010, organization officials announced yesterday. Of course, some stations may dispute the group's definition of below market: SoundExchange's plan would basically keep royalty fees at their current cost, as defined by the Small Webcaster Settlement Act of 2002.

Opponents of the royalty-rate hikes don't seem thrilled by the new offer: A group called SaveNetRadio told CNET News that SoundExchange's proposed discount might simply encourage small stations to stunt their own growth. –Brock Read

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