Sound Exchange is a performance rights organization that collects licensing fees from – among others – webcasters, and distributes the money they collect to the performers of the songs (not writers, that’s what ASCAP and BMI do) and the labels (if any) who released the songs.
For the past year or so, there has been a very vocal conversation going on regarding whether the rates that Sound Exchange are charging these webcasters are appropriate. The conversation has gotten increasingly heated as firms like Pandora have stated that due to the rate increases they will be forced to shut down.
I had the opportunity to interview Mr. Simson last April. My approach was to ask him to directly respond to many of the issues that surround Sound Exchange, Pandora, and the state of Internet radio in general.
Wired’s Listening Post Blog today ran a post commenting on the most recent kerfuffle between Sound Exchange and Pandora as a result of Washington Post article entitled, “Giant of Internet Radio Nears Its ‘Last Stand.'” In their blog post, they embed a bit of the interview.
If you’re interested in the entire interview, you can view it on the Artists House web site.
Here is the segment of the interview that Listening Post excerpted:
[Disclosure: I am the senior editor for Artists House Music.]