NAB, SoundExchange get together on stream scheme


The NAB has negotiated a package it thinks it can live with on royalties for webcast material, and has further struck separate arrangements with individual record companies pertaining to other types of usage and compensation. The agreement calls for a per-stream payment of $0.0015 in 2009 and gradually increases to $0.0025 by 2015. It pertains to both streamed versions of on-air programming as well as any internet-only offerings broadcasters make available.

"Today’s announcement provides local radio stations with the ability to enhance their local service with an online component, boosting listeners’ access to music, local news and information," said NAB EVP Dennis Wharton. "By ensuring the continued viability of internet streaming for America’s radio stations, today’s agreement further strengthens the relationship between free, local radio and our 235M weekly listeners."

SoundExchange Executive Director John Simson added, "It provides radio stations more opportunity to grow their on-line businesses in a stable business environment. Furthermore, it gives artists and copyright holders the opportunity to have more of their music played, while being fairly compensated, in more places as radio services expand their offerings on the Internet."

RBR/TVBR observation: This is where the future is, ladies and gentlemen. We still think that the promotional value broadcasters offer members of the music and recording communities should preclude additional compensation, and this is especially true if broadcasters are able to provide links to both that lead to direct sales of their material. But a reasonable agreement is much much better than nothing.