Internet Radio Not Dead

August 24th, 2007 at 12:00 am

save internet radio

The Digital Media Association, the group of web broadcasters have been under attack from SoundExchange, the group of royalties collectors for music, threatening to end the existence of internet radio as we know it today, free.

It’s actually the heart of even FM radio to provide free music to the public.  But even FM radio pays its dues to the artists of the music they provide and there is a limit to FM radio’s broadcast power so it hasn’t been really a big deal.  On the other hand, internet radio has been broadcasting music on demand without paying any royalties.  This has pushed SoundExchange to crack them down.

Today’s news however says that the two camps have reached an accord where the DMA will be paying royalties for the music they’ll be playing without passing the buck to the consumers.

According to’s spokesperson Jake Ward: "This agreement is a clear sign of progress in the ongoing negotiations between webcasters and SoundExchange and a very good first step toward a viable solution, but it is just the beginning. As the negotiation of recording royalty rates and terms continues, SaveNetRadio urges everyone involved to work in good faith toward a resolution."   However, this solution is still not ideal for the webcasters and they’ll be working something out sometime.

The gist of the agreement are a royalty cap at $50,000 per service and a minimum of $500 per channel payable to SoundExchange.