SoundExchange Offers Lower Prices To Small Fries

Quote

Late last month, Rep. Jay Inslee (D-WA), Sen. Ron Wyden (D-OR), and Sen. Sam Brownback (R-KS) introduced the Internet Radio Equality Act (IREA), which would overturn the CRB's new fee structure. Instead, SoundExchange would continue to receive a percentage of the webcasters' revenue, which would be set at the same 7.5 percent mark paid by satellite radio providers. The IREA was a major factor in SoundExchange's decision to roll back the clock on the licensing fees, which the licensing group admitted in a press release announcing the extension. "Although the rates revised by the CRB are fair and based on the value of music in the marketplace, there's a sense in the music community and in Congress that small webcasters need more time to develop their businesses," said John Simson, executive director of SoundExchange. "Artists and labels are offering a below-market rate to subsidize small webcasters because Congress has made it clear that this is a policy it desires to advance, at least for the next few years."