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News
DiMA and Sound Exchange Begin Talks
Wednesday, August 22nd, 2007 at 4:00 PM - by John Martellaro
The Digital Media Association, (DiMA), which represents AOL, Yahoo!, Real Networks and Apple is meeting on Thursday with Sound Exchange, the group that represents the major labels for royalty collection. The first order of business is the minimum US$500 annual fee per radio channel, according to the New York Post.
The base royalty rate for what Webcasters must pay in royalties won’t be in dispute at this session. That’s been fixed by the federal Copyright Royalty Board (CRB), and the rates have not yet been changed by Congressional initiatives.
Instead, the two groups will talk about the US$500 fee for each channel of Internet radio. Some Webcasters technically operate thousands of "channels," and the annual fee would severely limit the scope of those stations.
Sound Exchange apparently wants Webcasters to use anti-piracy procedures to prevent listeners from "stream-ripping." The $500 per channel annual fee is seen as a bargaining tool to enforce the labels’ desire for that protection.
Arbitron estimates that Internet Radio has about 4 million listeners during peak daytime hours. That’s compared to 230 million terrestrial radio listeners and a combined 14 million for satellite subscribers.
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