Musicians will be paid directly rather than through their record companies...
Musicians will be paid directly for broadcasts of their work on Internet, cable and satellite shows in the US rather than having money siphoned through their record companies.
A landmark deal has been struck between representatives of the musicians and record companies. Until now anything earned has been collected by the record company and then distributed. Now, both sides have agreed to take an equal share in the control of SoundExchange, an organisation that will track and gather royalties raised from digital broadcasts. BBC reports that $5.2million (£3.5million) was paid by SoundExchange to artists and other copyright holders on October 15. The deal is sure to have a knock-on effect for the UK.
Groups that signed the agreement include the RIAA (Recording Industry Association of America), a recording industry trade group, The American Federation of Television And Radio Artists and The American Federation of Musicians. Representatives of both the music industry and Internet broadcasters have also now called for an arbitration panel to rule on the size of web royalties due to artists.