DiMA Webcasters Accept Minimum Per-Station Cap (Updated)

Well, it's [not] official [see update]... Pandora, Live365, and other webcasters that offer a multitude of streams tailored to their listeners' taste won't be thrown under the bus by the minumum per-station fees charged by the new CRB royalty rates. Webcasters with a large number of individualized streams would owe a maximum of $50,000 per year for that privilege.

[Update: SoundExchange denies that a deal was made, and claims DiMA has the terms of its offer wrong.]

Although SoundExchange has said it won't aggressively enforce thenew rates tomorrow, webcasters aren't out of the woods yet, asnegotiations continue. They'll be counting on the continued support oflisteners to pressure Congress, which could aid in webcasters'
negotiations with SoundExchange.

DiMA sent a letter to SoundExchange late Friday accepting the offer,
with executive director Jon Potter issuing the following statement:

"DiMA appreciates SoundExchange’s acknowledgment that the minimum fee issue is critical to our member companies.
With the minimum fee issue off the table, our companies are hopeful that we canquickly meet with SoundExchange to negotiate a fair royalty rate that willsupport a sustainable business environment for Internet radio. DiMA membercompanies are also grateful for the support of the many Members of Congresswhose actions helped us reach resolution on this issue."

Upnext for negotiation are royalty rates for small webcasters,
apparently, because SoundExchange says the per-song-per-listener ratesfor large webcasters are non-negotiable. Tomorrow, Yahoo, Real, andother large webcasters will owe SoundExchange $0.0008 for ever songstreamed to every listener in 2006, and $0.0011 for every songstreamed to every listener in 2007.

However, these large webcasters have one more bet to make. Theycould withhold payment (under penalty of interest) with the hope thatthat Congress passes the Internet Radio Equality Act, which would charge them 7.5 percent of revenue rather than the flat per-song-per-listen rates.

(image from stus)