Webcasters Avoid Royalty Armageddon New deal with copyright owners saves Internet radio... Tipped by KrK 
For years, online radio outfits were worried that aggressive royalty payment structures designed by the entertainment industry could force them out of business. For now, at least, it appears that those worries are over. After two years of negotiations between webcasters and copyright holders, the new deal has large webcasters paying copyright owners up to 25% of their revenue or a "per-performance" rate that's supposedly 40-50% lower than those previously set by the Copyright Royalty Board. Smaller webcasters will also pay either a percent of revenue or a percent of expenses. "For us, it's hard to overstate how significant this is," Pandora founder Tim Westergren says of the deal. "It was either this or an ugly alternative."
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  ptrowskiGot Helix?Premium
join:2005-03-14
Putnam, CT
kudos:4 |  Pandora is great...
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|  |  tenpin784I Went To The Dark Side?
join:2001-03-30
New Durham, NH | Re: Pandora is great... I am listening to Pandora right now @ work. If my ATT coverage was better on the ride home, I would listen to it then too. | |
| | |  elios
join:2005-11-15
Springfield, MO | Re: Pandora is great... this is good the small station i DJ for is thinking about going legit we do anime and jpop stuff
it would cost us maybe 30 bucks a month to do so now we can live with this | |
| | | | kuzzle
join:2007-07-27
Richmond, ME | Re: Pandora is great... Anyone one else get the email from Pandora? | |
| | | | |  IT GuyOw, My BallsPremium
join:2004-07-29
Las Cruces, NM
 ·Comcast
| Re: Pandora is great... Yeah, I did... They said they are implementing a monthly cap of 40 hrs. per month or for $0.99 per month, they will lift the cap OR I can upgrade to Pandora One for $36 a year. I'm good with all options, I'm just broke right now. Apparently they only sent this notice out to heavy users such as myself.
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| | | | | |  Romney2012Defeat Obama 2012-Chg we can believe inPremium
join:2002-03-03
USA
kudos:4 | Re: Pandora is great... said by IT Guy:Yeah, I did... They said they are implementing a monthly cap of 40 hrs. per month or for $0.99 per month, they will lift the cap OR I can upgrade to Pandora One for $36 a year. I'm good with all options, I'm just broke right now. Apparently they only sent this notice out to heavy users such as myself. Here is their blog entry:
»blog.pandora.com/pandora/
The revised royalties are quite high - higher in fact than any other form of radio. As a consequence, we will have to make an adjustment that will affect about 10% of our users who are our heaviest listeners. Specifically, we are going to begin limiting listening to 40 hours per month on the free version of Pandora. In any given month, a listener who hits this limit can then opt for unlimited listening for the remainder of that month for just $0.99.
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| iansltx
join:2007-02-19
Golden, CO
kudos:2 | Agreed. Pandora is rather awesome. They do a good job at what they do, and I'm glad they're sticking around. | |
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Ikarasu
join:2004-01-09
Port Coquitlam, BC Reviews:
·TekSavvy Cable
| Nice... but what about Canada? While this is nice for Pandora... I cant help but be a little bit selfish... 
When will Canada see Pandora again? (I know all about proxys, Hotshields, ect ect, but the point is... It's stupid when America/Canada cant stream stuff to eachother).
Ever since this first started... I thought "This must be a mistake... its Canada...we're practically the same country, soon Pandora will be available for Canadians" boy was I wrong :\
Feels like the RIAA is flipping us off because our lack of "protecting" their copyrights >_> | |
|  SarahPremium,ExMod 2002-05
join:2001-01-09
Cambridge, MA
kudos:5 | The coverage on this is very strange Every site I've read except one or two fringe sites is lauding this as a huge victory for web radio.
Didn't anyone notice the part about the $25,000 annual minimum fee? This will kill off every small webcaster in the nation. Pandora has just wiped their competition off the map.
Yay for the little guy 
said by »www.guardian.co.uk/music/2009/ju···treaming :
The new model offers different licences depending on the size of the company. Sites earning less than $1.25m (£775,000) in annual revenue will pay up to 14% of revenue in exchange for streaming rights. Larger companies, like Pandora, will pay either 25% of revenue or 0.08 cents (0.05p) per song. This per-song fee will rise to 0.14 cents (0.09p) in 2015. All licensed websites will pay a minimum annual fee of $25,000 (£15,500).
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| | | | Re: The coverage on this is very strange Lets see them try to collect from independant artists! These jokers need to drop off the face of the earth. They act like they are the Mob and are Loan Sharking. | |
| |  pokesphIt Is Almost FastPremium
join:2001-06-25
Sacramento, CA
kudos:1 | said by Sarah:Every site I've read except one or two fringe sites is lauding this as a huge victory for web radio. Didn't anyone notice the part about the $25,000 annual minimum fee? This will kill off every small webcaster in the nation. Pandora has just wiped their competition off the map. Yay for the little guy said by »www.guardian.co.uk/music/2009/ju···treaming :
The new model offers different licences depending on the size of the company. Sites earning less than $1.25m (£775,000) in annual revenue will pay up to 14% of revenue in exchange for streaming rights. Larger companies, like Pandora, will pay either 25% of revenue or 0.08 cents (0.05p) per song. This per-song fee will rise to 0.14 cents (0.09p) in 2015. All licensed websites will pay a minimum annual fee of $25,000 (£15,500).
I hear ya there.. us small-timers have NO way of meeting that amount.. ever.
There REALLY needs to be a small / hobby webcaster class that is AFFORDABLE by the common man who earns no money off their webcasting.
ITS STRAIGHT UP GREED. PERIOD.
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 DataDocMy avatar looks like me, if I was 2D.Premium
join:2000-05-14
Greenville, NC
1 edit | Artist don't get radio fees, songwriters do ASCAP, BMI and SESAC fees are distributed only among the writers and publishers of the song. An artist only benefits if he/she wrote the song.
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"You see what you want to see, and you hear what you want to hear" - The Rockman | |
| |  BF69Premium
join:2004-07-28
Camden, TN | Re: Artist don't get radio fees, songwriters do said by DataDoc:ASCAP, BMI and SESAC fees are distributed only among the writers and publishers of the song. An artist only benefits if he/she wrote the song. That's where the money has ALWAYS been in music and the smart artists make sure they get a writting credit. | |
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| | Yay, Government allows some webcasters a modestly huge fee This is a transaction between two private parties for use of private property. I can't even fathom the attempt to justify Government involvement.
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Time... beckoning me. | |
| | | So what does this mean for the little guys? Are the internet radio stations that have $0 revenue going to have to pay to play? | |
|  DavidNow accepting new patientsPremium,VIP
join:2002-05-30
Granite City, IL
kudos:70
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 ·Google Voice
| Thank you guys!! said by ptrowski:I am so glad to see they will be able to stick around. Pandora is a great application I use at home, the office, and on the iPhone. said by iansltx:Agreed. Pandora is rather awesome. They do a good job at what they do, and I'm glad they're sticking around. said by IT Guy:Yeah, I did... They said they are implementing a monthly cap of 40 hrs. per month or for $0.99 per month, they will lift the cap OR I can upgrade to Pandora One for $36 a year. I'm good with all options, I'm just broke right now. Apparently they only sent this notice out to heavy users such as myself. All I can say is thank you guys! I just signed up today. I created my "metallica" station.  . Since OTA Radio stations here are just about as extinct as the dinosaurs (probably because of the computers and such). Radio here is just about at a shut out short of just a few stations that can penetrate the building. You can get Y98.1FM and barely z107.7. KSHE penetrates good but every now and then they get off on a tangent and I turn them off. Now I have an alternative and thanks!
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| | | | Re: Thank you guys!! if you got a hp laptop goto hp mediasmart then music then pandora,much nicer. im up to 40 stations i guess thats why i got the e-mail yesterday saying i was now on the meter.i got way more music then i could ever listen to. and i even bought 3 new cds from stuff i heard from one 1 of my stations (frou frou).i still goto last.fm for the music videos.. | |
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| | This deal $UCK$!!! This deal sucks! First off, you have to pay 25 grand to just be allowed to play...THEN you have to pay 25% of your GROSS revenues to them!
Sure, the 'big boys' like pandora like it , but everyone else gets SCREWED! | |
| |  KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK
·AT&T DSL Service
| Re: This deal $UCK$!!! Well, I think it's a minimum $25,000k.
IE you pay a % of revenue assuming you exceed $25,000 a year.
If your % of revenue is under $25,000 a year, you still have to pay the minimum.
So for small outfits, this is bad.
I didn't read it as you pay $25,000 PLUS 25%. I think the $25,000 number is rolled into the % as long as you make enough.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
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| | sick if ig studios This not a victory it is a screwjob by the same old players........
the assholes who are there to milk us of money.
BIG CORPORATE LABELS & THE RIAA
little guys will be forced out so a few big players can still exist and they will be forced to charge money and it is all BS.these shyster studios get free advertisement evertime one of their krap sell-out artists got played.
when will foks finally stop buying music from any large label and/or any artist who signs with the RIAA.
and why does the internet radio stations pay the money and play the krap.
there are thousands of artists who would be glad for any kind of airtime and they will never charge a dime.
i play in 2 bands and both will never charge money for airtime | |
| mc5w
join:2002-06-14
Independence, OH | Alternative But, there is just enough copyright expired music out there that an Internet radio station could get away with not paying royalties. That is the state of affairs in ballroom dancing if you want to push back. Ascap and Bmi will not touch the smaller ballrooms and studios because they don't want to get any publicity to the effect of, " I don't have to play your stuff. "
Only a small amount of ballroom recordings that are copyright expired but it is much like how Cleveland Public Power does electrical contracting for FREE ( electrical services and house rewires ) and that affected how much I could charge outside of City of Cleveland even though CPP does not outside the city limits except possibly a small corner of Newburgh Heights.
I bitch about how Cleveland Public Power is doing my work for FREE but the only thing I could really do about it was to move in with my sister in Marysville, Ohio.
One of the reasons why rock and roll bands write their own music is because they do not want to have to pay somebody else. | |
| | | | Re: Alternative The big alternative to royalties and the new guidelines would be university radio streams. I'm not talking about National Public Radio BTW. I mean the mostly one-off experimental, avant-guard, or obscure music play lists. I believe but am not certain that theses streams are exempt.
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