Archives for July 2009

New Online Radio Station Royalties

The New York Times reported that record labels and online radio stations have agreed to new royalty rates.

A summary of the new royalty rules for internet radio stations follows.

1. $25,000 annual minimum fee that can be applied against their royalties payable.

2. Online radio stations with revenue of less than $1.25 million will pay 12 to 14% of revenue for the right to stream music.

3. Online radio stations with revenue of $1.25 million or more will pay the greater of 25% of revenue or a fee per song that increases from 0.08 cent in 2008 to 0.14 cent in 2015.

4. Webcasters must provide detailed information about the songs that they play and how many listeners each song has to SoundExchange. They must keep these records for four years.