Labels, Internet radio agree to royalty deal
07/07, 5:20pm
Online Radio Royalty Deal
Owners of Internet radio stations and music label groups struck a deal on Tuesday that should allow online outlets to continue streaming music. The agreement is now a scaling one and will ask larger stations to pay either 25 percent of their revenue or a per-track rate based on the year, ranging from 0.08 cents per song in 2006 through to 0.14 cents per song in 2015, depending on whichever is greater. Those companies that make less than $1.25 million per year will be asked to pay between 12 and 14 percent of their revenues.