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September 25, 2008

So, What Kind of a Deal, Really? [11:15 am]

Something I know I need to think about — after I get home: Royalties Deal in Online Music (pdf)

The agreement, revealed Wednesday, is designed to settle how the industry calculates royalty rates for limited downloads and music that is streamed online, including when it is provided by subscription and advertising-supported services.

Fans using on-demand music streaming can select the songs they want to hear but do not keep a permanent copy.

Under the proposal, providers of such services will pay a royalty of 10.5 percent of revenue after other royalties are calculated.

The Digital Media Association’s press release: Major Music Industry Groups Announce Breakthrough Agreement

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