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Grassroots net radio saved from going dark by Sound Exchange today

Posted on May 22, 2007 by

ClassicradiosshinyedgesFinally some good news on the net radio front.  Just when it seemed like hundreds of net radio stations around the country were about to go dark after July 15, the music industry group Sound Exchange has agreed to stave off execution for a bit. RAIN reports that this morning that Sound Exchange, in response to a request from key   members of Congress, has made an offer to extend the rates and terms of   the Small Webcaster Settlement Act (SWSA)-related license agreement  to "small   webcasters" through the end of 2010. The Sound Exchange release states:

As suggested by the Subcommittee, SoundExchange is proposing that the subsidy be based on a percentage of revenue model and is proposing the same rates that prevailed under SWSA: small webcasters would pay royalty fees of 10% of all gross revenue up to $250,000, and 12% for all gross revenue above that amount. The proposal includes both a revenue cap and a usage cap to ensure that this subsidy is used only by webcasters of a certain size who are forming or strengthening their business.

No word on the exact cap amount, but its likely to be in the $1 million revenue range, so far beyond most mom-and-pop operations (like Yehoodi radio.)  Obviously we’ll have to fight this battle all over again in 2010, but that gives us lots of time to mobilize.  Sweet!

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