Web radio providers
worried about their survival have something to celebrate this evening. The U.S. Senate has passed the
Webcaster Settlement Act, a bill permitting Internet radio broadcasters to continue to negotiate their own royalty rates with content owners. The legislation gives breathing room to startups who feared that the existing royalty rates, widely considered too high in comparison to terrestrial radio, would soon push them out of business.
Oakland, Calif.-based Web radio provider and recommendation engine
Pandora Media Inc., an eight-year-old startup backed with $20 million from investors including WaldenVC, Labrador Ventures, Selby Venture Partners and Crosslink Capital, vocally supported the legislation, as did the
Recording Industry Association of America. The company celebrates the legislation's passage in a blog post
here.
The Senate vote comes about a week after music publishers and industry groups
revealed details of their proposal to set royalty rates for interactive streaming-music sites. Pandora, categorized as a non-interactive Webcaster, is not affected by that proposal.
The new legislation, which passed the U.S. House of Representatives on Saturday, now heads to the White House for President Bush's approval.
-- Paul BonanosSee Sept. 23 post from Tech Confidential concerning royalty rates for interactive streaming-music sites
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