Washington - SaveNetRadio, a group backed by large webcasters such as AOL, Yahoo and Live365 who are represented by the Digital Media Association, said an offer put forth yesterday by SoundExchange that would provide below-market royalty rates for small webcasters would "decimate" the Internet radio industry.

SoundExchange offered to extend the terms of a 2002 law that offered lower rates to small webcasters -- defined as those with annual revenues of less than $1.25 million -- so they could grow their businesses.

"The proposal made by SoundExchange today would throw 'large webcasters' under the bus and end any 'small' webcaster's hopes of one day becoming big," said SaveNetRadio spokesperson Jake Ward.

"Under government-set revenue caps, webcasters will invest less, innovate less and promote less."

Meanwhile, groups including the independent record label trade group the American Association of Independent Music (A2IM), and American Federation of Musicians of the United States and Canada voiced support of the offer from SoundExchange.

"While it is a sacrifice in revenue for our labels and their Independent artists at the moment, it's a sacrifice we're happy to make, as it is an investment in a sector that has demonstrated a commitment to the diverse array of Independent music our members and their Independent artists create for consumers," said A2IM president Rich Bengloff.

Related Links:
http://tinyurl.com/2q4lpk

http://www.savenetradio.org

http://www.a2im.org