Online Radio Saved by the Bell

Looks like the campaign to save Internet radio worked. SoundExchange has promised not to collect its corrupt royalties from webcasters.

At today’s Congressional hearing about the new rates for online radio that would essentially destroy it, SoundExchange, which was scheduled to receive the new royalty payments on Monday morning (since the enforcement date falls on a Sunday), made a startling statement.

The SoundExchange executive [Jon Simson, executive director] promised — in front of Congress — that SoundExchange will not enforce the new royalty rates. Webcasters will stay online, as new rates are hammered out.

Spearheading the new negotiations is Internet-savvy Rep. Ed Markey.

The House Commerce Committee is calling on representatives from the webcast and recording industries to meet today to discuss a settlement that would provide Internet radio operators with a workable alternative to the proposed CRB rates scheduled to go into effect Sunday, according to an article in the Hollywood Reporter.

Discussion between the two sides comes at the behest of Rep. Ed Markey (D-MA), who has actively voiced concerns in Congress regarding the CRB’s disastrous effects on the webcast industry.

The reprieve comes just days after a DC Circuit Court ruled to uphold the exorbitant royalties. I think I speak for every music-loving Netizen when I say: whew!