CRB Update

Just a quick update on the CRB / Royalty issue:

SoundExchange and small (and large) broadcasters continue to hold discussions on the royalty situation. SoundExchange has made an offer to small webcasters that has some problems, but the base rate is acceptable. (What's not acceptable is the proposed limitations on listeners and revenue caps).

We've verbally agreed to continue paying at the 2006 rates while the discussions continue. I don't think SoundExchange wants to shut down most webcasters; and I've been told by several SoundExchange board members that they think highly of what SomaFM is doing.

One other thing: it looks like the Copyright Act is getting a substantial re-write due around 2010 and will treat analog and digital systems the same. We learned this meeting with members of the House and Senate Judiciary committees this summer.

So that's it: not much of an update, but that's what we know now.

EMI scraps about 20 per cent of CDs produced, at an annual cost of £25m

Financial Times has a crazy factoid in this article about revamping EMI:

The record business - in which 85 per cent of artists are lossmaking and EMI pays £25m a year to scrap unsold CDs - "is stuck with a model designed for a world that has changed and gone forever", he says.

Good to know that they're realizing that digital distribution is going reduce waste and expenses like this.

CRB denies SoundExchange's request for rehearing for Satellite radio rates

The CRB ruled that Sat Radio would pay 6.0% (increasing to 8.0% by 2012) of their adjusted gross revenues. Apparently, SoundExchange doesn't like the exceptions to the gross revenue that the CRB allowed.

On December 3, 2007, the Copyright Royalty Judges (“Judges”) issued a Determination of Rates and Terms in this matter (“Initial Determination”). Pursuant to 17 U.S.C. § 803(c)(2) and 37 C.F.R. Part 353, SoundExchange, Inc. (“SoundExchange”) filed a motion for rehearing “to reconsider the definition of Gross Revenues set forth at pages 28-31 of the [Initial] Determination; and, in light of recent predictions that approval of the XM/Sirius merger is imminent, reconsider its unwillingness to assess the impact of a merger as part of its [Initial] Determination.” The Judges permitted a response and XM Satellite Radio, Inc. (“XM”) and Sirius Satellite Radio, Inc. (“Sirius”) (collectively, the “SDARS”) filed a timely response, opposing the motion. The Judges now deny this motion. Nevertheless, as discussed below, the Judges have determined that one limited area of the Initial Determination warrants clarification.

PDF of full decision here.

Happy New Year

Thanks to everyone for making 2007 an incredible year for SomaFM. While we had lots of challenges (hi CRB!), we also had incredible support from our community of listeners. We have some exciting new stuff in store for 2008. And the CRB battle isn't over yet, although at this point, it seems more like continued peace negotiations and nothing like a war.