SoundExchange Makes an Offer - Radio World

SoundExchange Makes an Offer

SoundExchange said its latest offer in the online fight over royalties will help small commercial Webcasters.
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SoundExchange said its latest offer in the online fight over royalties will help small commercial Webcasters.

It is offering small Webcasters a “discounted rate agreement” through 2010, saying the offer was in response to “concerns expressed by many small commercial Webcasters, and consistent with a request made by Congressmen Howard Berman (D-Calif.) and Howard Coble (R-N.C.).”

The organization is sending formal offers to qualified small Webcasters “that would allow them to continue operating through 2010 under essentially the same terms they have enjoyed under the Small Webcaster Settlement Act.”

“By providing each small Webcaster with an agreement that extends the terms of the Small Webcaster Settlement Act, it takes the uncertainty out of the air as to most of their programming, and lets them continue streaming,” said John Simson, executive director.

Small Webcasters are defined as those earning $1.25 million or less in total revenues; they would pay royalty fees of 10% or 12% of revenue. The proposal includes a usage cap “to ensure that this subsidy is used only by Webcasters of a certain size who are forming or strengthening their businesses.”

The offer comes with a Sept. 14 deadline.

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