A congressional push to change the royalties webcasters pay to...
A congressional push to change the royalties webcasters pay to the recording industry has a chance of passing this year, but is still an uphill climb, Guggenheim Partners analyst Paul Gallant wrote in a note to investors. A hearing in…
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November laid the groundwork for a new push in 2013 and 2014, he wrote. Already, broadcasters are lining up opponents to any effort to force terrestrial stations to pay a performance royalty, he said. A resolution introduced last week was aimed at preventing such legislation and has gathered 74 cosponsors so far, he noted. More are likely to follow as 179 representatives signed an identical resolution during the last congressional session, he said. Such maneuvering could keep new royalty legislation focused on webcaster rates, which could be a boon for Pandora because it would likely lead to lower royalties after 2015, he said. “We expect additional hearings to be scheduled on this issue,” he said. “And given [House Judiciary Committee Chairman Bob] Goodlatte’s [R-Va.] openness to compromise at the November hearing, it is possible a revised webcaster bill will be introduced either before or after those hearings begin,” he said. Making the legislation more acceptable to the record labels, who have opposed the bill in the past, could be a big part of any revisions, he said.