August 26, 2005
Publishers Keep Dragging Heels In Online Music Licensing
News.com reports on the breakdown in negotiations between subscription services and music publishers. Good times:
services’ gross revenues go to songwriters and publishers. That’s far
above what publishers and songwriters typically get for a music sale,
which usually is around 5.25 percent for online radio or 8.5 percent
for digital downloads.
“The services say that figure is far too high, and have suggested 6.9
percent instead. Both sides have now stopped negotiating and are
trading angry letters instead.” (emphasis added)
All the more reason to reform Section 115 and restructure the way the composition right is dealt with.
Let this be a reminder that the record labels’ position as the
unwilling intermediary has sometimes been overrated. relatively speaking – licensing the
composition right has also been unnecessarily difficult for online
services.
Filed by Derek Slater at 9:59 pm under General news
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