“Pureplay” Internet broadcasters have reached an agreement with SoundExchange on sound recording royalty rates for the period of 2006-2015. The 10-year agreement resolves disputes with Pandora, AccuRadio, Digitally Imported, and radioIO.
In an article published yesterday by Bloomberg.com, Live365 (our parent broadcaster) opposes the agreement. Johnie Floater, general manager of media for Live365, “the new rates are less favorable for smaller Web radio. These little DJs, which are really the diversity and the promise of the Internet, are being squeezed out.” Floater continued on by saying, “Today’s announced rates raise the hurdle on these little guys even further.”
So, the question is, can Live365 come to an agreement with SoundExchange within the next 30 days? If so, what does that mean for Internet radio stations like “Smooth Jazz and More”? Will our rates go up even more?
More than likely, rates at Live365 will go sky high to the point that they can no longer afford to broadcast anymore. This is a bad sign for hobby broadcaster like myself.
We wait nervously for the outcome of Live365’s negotiations with SoundExchange.