Did the Big Machine/Clear Channel deal just set Webcasting rates at 3% of revenue?

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Copyright nerds might want to pay close attention to a brief aside in a post from Oxenford on the Broadcast Law blog. 

In that aside, David refers to possible parameters in the Big Machine / Clear Channel royalty deal: 1% of revenue for broadcast royalties, 3% of revenue for webcasting. (These rates were also reported by InsideRadio).

These parameters were apparently not denied by the President of Big Machine.  Instead,  these rates were referred to as “in the ballpark.”

And what a ballpark! A rate that is orders of magnitude lower than that paid by pureplay webcasters and roughly 40% of that rate paid by satellite broadcasters.

To put the orders of magnitude in perspective… Under this 3% rate, Pandora would pay $12million in 2012 for sound recording use, rather than $130m.

The plot thickens…