AFM Supports Below-Market Royalty Rates to Subsidize Small Webcasters

The American Federation of Musicians Supports Below-Market Royalty Rates to Subsidize Small Webcasters During 2006-2010

New York, NY – The American Federation of Musicians of the United States and Canada (AFM), AFL-CIO expressed support for a proposal made yesterday by SoundExchange to extend below-market rates to certain small webcasters for the current license period of 2006-2010, in order to give them additional time to develop their businesses under subsidized rates. SoundExchange made the proposal on May 22 at the urging of Congressman Howard L. Berman (D-CA) and Howard Coble (R-NC) of the U.S. House Committee on the Judiciary.

“Most recording musicians, including royalty artists and session musicians, are entrepreneurs themselves,” said AFM President Thomas F. Lee. “Fifty percent of the royalties paid by webcasters go to performers, and performers surely need that income stream to make it in their own careers. But they also know from experience that it can be tough to build a business, and they are willing to make some sacrifices to give small webcasters the opportunity to grow and make the world of internet music as diverse and artist-friendly as possible.”

For the rest of this story go to: http://www.afm.org/public/press/052307.php