Agreement: Some radio broadcasters will pay some performers' royalties

With terrestrial radio stations now facing the possibility of Congress lifting their historic exception from paying royalties to performers for over-the-air broadcasts, they could use a break. Yesterday, they got one in the form of an agreement with the National Association of Broadcasters for lower performers' royalties when a station operates a simulcast or separate streaming outlet over the Internet.

The rate originally established for stations during 2009 and 2010 will be reduced by 16%, to $0.0015 per recording streamed, gradually increasing to $0.0025 (one quarter of one cent) per streamed recording by 2015. Though this may lessen the burden for terrestrial stations some, it may also be perceived as a concession by broadcasters that performers do deserve something from airplay. If subsidiary airplay deserves compensation, then why not the primary channel as well.

NAB Executive Vice President Dennis Wharton's comments yesterday, which referred to "ensuring the continued viability of Internet streaming for America's radio stations," refrained from referring to such royalties as a "performance tax" -- the phrase used with respect to the Performance Rights Act of 2009 reintroduced in Congress earlier this month.