A group that collects royalties for music artists and recording companies has agreed to reduce rates for thousands of commercial radio stations that also play songs over the Internet.
Internet radio station operators had complained that rates originally set by the federal Copyright Royalty Board in 2007 could essentially force them to shut down.
The new deal lowers those rates by about 16 percent in 2009 and 2010. The stations will now pay $1.50 for every song heard by a thousand listeners in 2009, rising to $2.50 per 1,000 listeners in 2015.
The agreement between the National Association of Broadcasters and the royalty-collection group SoundExchange covers the Internet streaming operations at several thousand NAB-member stations, including those owned by Clear Channel Communications Inc. and CBS Corp. Stations that are not members of the broadcasters’ group have the option of joining the agreement, according to the NAB.
The deal, announced Monday, is the latest between SoundExchange and groups representing over-the-air radio stations that also stream music over the Internet. Both sides have been negotiating new rates since a 2007 ruling by the Copyright Royalty Board dramatically raised the rates Internet radio stations had to pay recording companies and artists.
SoundExchange Executive Director John Simson said Tuesday that the agreement brings certainty to his group and the NAB about what the rates are.
“It also reinforces the value of our recordings for the artist and copyright owners over the course of the term,” he said.
SoundExchange is a nonprofit that collects royalties from Internet radio stations and other digital radio services and distributes them to recording companies and artists.
In a statement, NAB spokesman Dennis Wharton said the deal ensures that U.S. radio stations can continue to stream music over the Internet and “further strengthens the relat ionship between free, local radio and our 235 million weekly listeners.”
Webcasters and over-the-air radio stations already pay composers and music publishers royalties for the music they play, but traditional stations have been exempt from paying artists and recording companies any royalties under the logic that airplay provides free promotion. But broadcasters are subject to royalties for any songs played online.
Simson said SoundExchange is still trying to hammer out rate agreements with various groups, including two that represent college radio broadcasts and one representing religious broadcasts. The group also is in talks with major online-only webcasters, such as those represented by the Digital Media Association, a trade group composed of companies that run online audio and video services.
The agreement with the NAB comes several weeks after SoundExchange reached a similar deal with the Corporation for Public Broadcasting. Under that agreement, SoundExchange gets an upfront royalty payment of $1.85 million for streaming of sound recordings on numerous public radio Web sites from Jan. 1, 2005, through Dec. 31, 2010.
Director Tim Bullock Goes ROGUE In U.K.
Director Tim Bullock has joined ROGUE Films’ U.K. roster for commercials and branded content. He continues to be handled in the U.S. market by Ruffian, in Australia by Scoundrel, in France by Division and in Germany by Tony Petersen Film GmbH.
Bullock’s work spans drama and comedy. In his own words, Bullock is “all about mining for a reaction--whether it be laughter or tears or inspiration.” He is a master of adopting a tone of voice and stylistic approach that suits the script and the message. Prior to joining ROGUE, Bullock was repped in the U.K. by Blink.
Kate Taylor, ROGUE managing director and partner, commented, “Tim Bullock has a reel that oozes confidence and craft - that there are a few big chortles to be had, just makes it for me. I’ve been a huge fan of his for years--so, naturally, I’m delighted that he’s chosen to come to Rogue--and no, I don’t need to go to Specsavers. I know exactly what I’m looking at when I look at his work. Genius! That’s what.”
Bullock said, “Throughout my time directing, Rogue has always been a name associated with rock-solid, quality work. I like that the company represents a breadth of directors with differing styles but all united by a high standard of work. Sam Brown is particularly inspiring to me. And what’s not to like about Kate Taylor? I’ve been a long time fan of hers and I can’t wait to work with her.”
Famously a “suit” in his previous life, Bullock started out as a corporate recovery consultant for KPMG and then an account director at Saatchi & Saatchi before he began to fulfill his unleashed creativity directing short films. These shorts just kept winning awards so Bullock jumped ship from the corporate world and landed fully in the world of... Read More