NAB Board Discusses Royalties in DC

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Washington, DC - Aug 6, 2010 - The debate over the terrestrial radio performance fee is top-of-mind for the NAB Radio Board, which is meeting to discuss if it is worthwhile to pursue a settlement on the issue. A very low rate is reportedly being offered (1 percent) for a period of several years.

The Davis Wright Tremaine communications law blog says that any settlement talk raises important questions about its details: Once record companies get a cut, will they be satisfied or seek more? What does radio really get in return?

One possible quid pro quo is a reduction in the streaming royalties of 25 percent. Will greatly reduced streaming royalty rate be a sufficient incentive for current non-streamers to begin streaming? Another proposal pushes the FM chips in cell phones to be mandatory.

The NAB meeting is scheduled for Aug. 6, 2010. Details will be posted once they are available.

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