Music Streamers and Music Labels Agree- Let’s Split The Money!
One of the most debated issues in modern music today may have just been resolved. According to Reuters news service, an agreement was reached Tuesday on how money should be split between companies and artists from streaming music on the Internet. With the agreement, large music streaming companies will pay artists and copyright owners up to 25 percent or on a per song basis, whichever equals more money. Smaller streaming companies that make less than $1.25 million will pay a smaller percentage. The nonprofit group SoundExchange, in charge of collecting and distributing music royalties, made the announcement Tuesday. SoundExchange includes Warner Music Group, Sony BMG and 2,500 independent labels.
SoundExchange Executive Director, John Simson said in a statement Tuesday:
“’It gives certain pure play webcasters the opportunity to flesh out various business models and the creators of music the opportunity to share in the success their recordings generate.”
Avid users of music streaming sites like Pandora shouldn’t stress about forthcoming charges from the deal. Pandora users will be only charged 99 cents if they listen to more than forty hours of music per month. Anything less than forty hours is free.