Introduction
SoundExchange and the National Association of Broadcasters (NAB) have finalized a landmark agreement concerning Internet streaming rates for local radio stations. This comprehensive deal applies to both simulcast programming and new standalone Internet stations, ensuring stability and growth in online broadcasting through 2015. The agreement offers financial incentives, reduces rates for the initial years, and establishes a clear framework for the future, promoting innovation and access.
Rate Adjustments and Duration
The agreement, reached under the Webcaster Settlement Act of 2008 (H.R. 7080), provides discounted rates for 2009 and 2010, with a gradual increase from $0.0015 per streamed sound recording in 2009 to $0.0025 by 2015. This structured approach allows broadcasters to plan long-term strategies for their digital platforms while delivering cost savings during the early years. The reduced rates apply to simulcasts and web channels operated by local radio stations, fostering the integration of traditional and digital formats.
Flexibility and Statutory Waivers
To further enhance the listening experience, NAB has negotiated separate agreements with individual record labels to waive certain statutory restrictions. This allows for increased flexibility in programming, such as playing specific artists more frequently within designated timeframes. These provisions enable stations to diversify their offerings and better cater to audience preferences without compromising copyright obligations.
Impact on Stakeholders
The agreement is seen as a win for all parties involved in the music ecosystem. For artists and copyright holders, it expands opportunities for fair compensation and greater exposure. Broadcasters gain a stable business environment to develop their online presence, while listeners benefit from enhanced access to music, local news, and information. John Simson, Executive Director of SoundExchange, emphasized the importance of this milestone in supporting the growing role of Internet-based music services.
Strengthening Local Radio Services
Dennis Wharton, NAB Executive Vice President, highlighted the benefits for local radio stations, which can now integrate robust online components into their offerings. This initiative not only strengthens the connection between local radio and its 235 million weekly listeners but also ensures the continued viability of Internet streaming. The agreement reinforces the value of free, local radio while adapting to evolving technological trends.
Future Prospects and Innovation
By addressing key concerns around Internet streaming rates, SoundExchange and NAB have laid the groundwork for sustainable growth in digital broadcasting. The collaboration underscores the importance of adapting traditional media models to new platforms, ensuring that music remains widely accessible while maintaining fair compensation for creators. This agreement is expected to inspire further investments and innovations in online radio services.
Additional Information
For more details about SoundExchange, visit www.SoundExchange.com. To learn more about the National Association of Broadcasters, visit www.nab.org.
