Changes may be coming that effect the Nashville songwriting and music publishing scene. Yesterday, I had a chance to sit in on a recording session for a new song co-written by Jessica Rae. While I sat, I noticed all the elements that go into producing a hit song. Everyone in the room adds a special element that makes that song unique. Most of the people in the room, however, are paid a flat fee, never to see future royalties from their creative help.
Changes may come soon though as the NAB Joint Board has ratified settlement terms to MusicFirst Coalition trying to settle radio performance royalties issues...
According to Radio Ink Magazine:
Under the terms approved by the Radio Board, broadcast stations that play music would pay between .25 percent and 1 percent of net revenues. A law requiring cellphones to include a radio chip -- with an "acceptable phase-in period" and the inclusion of HD Radio chips when that is "economically feasible" -- is part of the term sheet, but if that can't be accomplished right away, radio would agree to an initial performance royalty of .25 percent of net industry revenue.
Thereafter, the performance royalty would mirror the penetration of radio-capable cellphones. Once market penetration reaches and maintains a level of 75 percent, broadcasters would pay a full 1 percent performance royalty. That rate has no expiration date.
See the full proposed terms here.
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