WASHINGTON, DC (CelebrityAccess MediaWire) — The anticipated axe did not fall on Sunday after representatives from the recording industry, traditional radio and net radio met on Capital Hill on Friday to negotiate an agreement to stave off any lawsuits that might have resulted from the new royalty payment regime that went into effect on July 15th.
The controversial royalty increase appeared to be on track to put net radio broadcasters out of business entirely. Despite their apparently impending doom, the net broadcasters had remained inflexible on potential compromises offered by SoundExchange until this Friday past. SoundExchange, seeming to acknowledge that there may be some potential truth to the net broadcaster's claims of their imminent demise has agreed to forgo lawsuits while the negotiations continue and offered a $50,000 annual royalty fee instead of the $500 per-stream fee that had been mandated by the CRB ruling. This change is significant in particular for popular websites like Pandora that allow users to create their own customized streamed stations, a business model that would have been impossible under the new royalty regime.
Negotiations are still required to settle on the final details of a long-term compromise but representatives from both sides commenced meeting on July 16th to try and hammer out the final agreement, but for now, net radio will continue to make itself heard. – CelebrityAccess Staff Writers