RealTime IT News

IAM Sets Industry Standard with Digital Licensing Agreement

Web-based radio group Interactive Media Network (IAM) has announced an agreement with Australian record label Warner Music Australia covering the transmission of the music online.

Under the arrangement, Warner Music and its artists will receive all royalties generated from the broadcasting of its artists on the IAM network, where previously no royalty on digital broadcasting has existed.

IAM expects to begin broadcasting within a month, and will offer a lineup of which includes a number of former stars of ABC radio's national youth network, Triple J.

IAM chief executive officer Brian Harris said that while the licensing agreement with Warner Music was not necessary under existing legislation, IAM believed it was an important step in legitimizing the medium of online radio and cementing relationships between suppliers and broadcasters.

"We will also be ensuring a minimum quota of 20 per cent Australian content on IAM," Harris said. "We have a strong belief in supporting new talent and Australian talent. We don't want to be just another radio station playing old music and offering the same tired formulas."

Warner Music Australia's finance and business affairs director, Gary Smerdon, said the licensing agreement with IAM recognized the emergence of net radio as a viable business.

"This kind of agreement may well prove a model for the rest of the industry. By establishing a voluntary framework now, we can protect the intellectual copyright of our artists, support a growing industry, and avoid unnecessary regulation at a later date," said Smerdon."

Both IAM and Warner said they expected to negotiate licensing agreements with other music companies and broadcasters respectively.

InterActive Media Network has since announced the name of its first online radio station - bigfatradio, which will begin broadcasting later this month.