Federal law requires satellite radio, digital cable and Internet companies to pay the artists and record companies unlike traditional land-based radio stations, which pay royalties to songwriters and publishers.
Although the figures are not publicly disclosed it is estimated that the two subscription satellite radio companies currently pay about 6.5 to 7 percent but that agreement expires at the end of this year.
Neither company has yet to make a profit and if they were to pay 10 percent of revenues or $1.10 per subscriber, whichever is higher as SoundExchange has suggested, royalties could reach $9 million the first year.
Read more about the proposal here.
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