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Business News Deals Digital Media
SoundExchange agrees terms with American public radio broadcasters
By Chris Cooke | Published on Tuesday 17 March 2015
SoundExchange, the US rights body that licences online and satellite radio services on behalf of record companies and recording artists, has confirmed that a new deal has been struck with NPR and the Corporation For Public Broadcasting, covering the webcasting operations of public radio stations Stateside.
As much previously reported, radio licensing is different in the US than Europe, in that AM and FM radio stations aren’t required to get licences at all from the record companies for the music they play, and while online radio services do need to pay royalties to the labels, a compulsory licence operates, so that labels are obliged to licence via SoundExchange.
The rates paid are ultimately set by the judges that sit on the Copyright Royalty Board. When digital services and SoundExchange can’t agree (as is often the case with personalised radio services like Pandora, which are also covered by the compulsory licence), both sides bicker in front of the judges, who then make a decision on what should be paid. But sometimes all parties arrive at the CRB with previously agreed proposals, as is the case here.
Confirming the new deal with NPR and CPB, SoundExchange CEO Michael Huppe told reporters: “We always prefer negotiated solutions with digital services, provided that they ensure appropriate payment to artists and rights holders. We are pleased that we have again reached an agreement with NPR and CPB. This agreement recognises the unique circumstances and missions of these organisations, and compensates the creators of the music used in their programming”.
Meanwhile Pat Harrison from CPB added: “The Corporation For Public Broadcasting is pleased that we, together with NPR and SoundExchange, have reached an agreement on internet streaming of sound recordings by public radio stations funded by CPB that recognises the unique nature of public radio and the vital service it provides to the American people”.
And if you were holding out for a quote from NPR CEO Jarl Mohn, here it is! “We are pleased to again collaborate with SoundExchange to come up with a framework for royalties that provides artists and rights holders with fair compensation while recognising public radio’s distinctive public service and non-profit operating model. The agreement is a testament to public radio’s significant contributions to musicians, artists, audiences and cultural programming in today’s dynamic music environment”.
Assuming the CRB accept the proposed deal, which it probably will, the new rates will be in effect from 2016 to 2020.
