Webcasters, SoundExchange Near Agreement

By Nick Mokey Published September 29, 2008

Webcasters, SoundExchange Near Agreement

Salvation may be on the way for webcasting radio stations like Pandora, which have long warned that new royalty rates may kill them off. On Saturday, the House of Representatives unanimously passed a bill [PDF] that would aid the stations by giving them another two months to negotiate with SoundExchange, the organization that sets the rates.

All parties involved actually supported the Webcaster Settlement of 2008, including webcasters, SoundExchange, and even the RIAA. The National Association of Broadcasters, an organization that represents traditional radio stations, originally resisted the measure, but dropped opposition after the proposed negotiation period was extended from one months to two months, giving it more time to reach its own deal with SoundExchange.

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If the measure manages to pass the Senate on Monday, Feb. 15 will stand as the new deadline for negotiations between all parties. Although SoundExchange originally took a hard line with webcasters, charging 14 cents per song played, it has indicated a willingness to hammer out more reasonable rates in line with the profits webcasters actually manage to generate.

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