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
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.