Net radio given reprieve

The ax is lifted, for now.

At today's Congressional hearing about the new rates for online radio that would essentially destroy it (as readers of this blog already know), SoundExchange, which was scheduled to receive the new royalty payments on Monday morning (since the enforcement date falls on a Sunday), made a startling statement.

The SoundExchange executive [Jon Simson, executive director] promised said -- in front of Congress -- that SoundExchange will not enforce the new royalty rates on Monday. Webcasters will stay online, as new rates are hammered out.

I just spoke with Pandora founder Tim Westergren, who expressed relief that Pandora wouldn't have to shut down on Sunday in response to the new rates. He said, "It was getting pretty close. I always had underlying optimism that sanity was going to prevail, but I was beginning to wonder."