Los Angeles – A group representing independent U.S. record
labels has taken issue with what it believes are digital music service
Rhapsody’s move to seek lower royalty payments for streaming music, Billboard
"From what we’re hearing, Rhapsody is seeking the webcaster
‘pureplay’ royalty rates rather than using the standard Copyright Royalty Board
(‘CRB’) rates (set by a government tribunal)," A2IM wrote in a blog post
to members, adding that Rhapsody would receive a 40% discount on existing rates
A2IM notes that webcasters who receive ‘pureplay’ status make
"certain important concessions," but Rhapsody appears to be pushing
against those concessions — for instance, by seeking to increase the number of
times a particular artist’s songs may be played over a three-hour period.
are constantly exploring new deals with our partners as we build our service
and add new product innovations," a Rhapsody spokesperson told Billboard.
"Radio is an area of focus for us, so we are exploring a multitude of
methods to bring radio to our subscribers."