Oct 07, 2014
Internet Radio Rate-Setting Proceeding Now Underway; Establishes Rates for 2016-2020
SoundExchange filed its written direct case today in the “Webcasting IV” rate-setting proceeding that the Copyright Royalty Board (CRB) commenced earlier this year. In that proceeding, the CRB will determine the rates and terms for webcasting under the statutory license that SoundExchange administers, and that more than 2,500 digital radio services use every day. The proceeding will set rates that will apply January 1, 2016 – December 31, 2020. An initial decision is due from the CRB by December 15, 2015.
In its written direct case, SoundExchange provides substantial evidence of the current market rates for streaming services and argues for rates that reflect a fair market value for recorded music. The 2015 webcasting rates are $0.0023 per performance. SoundExchange is seeking an increase in the per-performance rate, as well as a rate structure that requires services to pay the greater of that per-performance rate or a flat percentage of revenue. Both the rate structure and the specific rates are based heavily on evidence of other deals that exist in the marketplace. SoundExchange’s full Webcasting IV rate proposal filing, as well as a summary, can be found here.
“Digital radio services, and the revenue they generate, have become a critical part of the music ecosystem. For more and more consumers, streaming is becoming the preferred path to access music, and webcasting rates must reflect this market and economic reality,” said President and CEO Michael Huppe. “SoundExchange is guided by a single principle – all creators deserve fair compensation, whenever and wherever their music is used. We will continue fighting to ensure this happens.”
More details on the statutory license that SoundExchange administers and the current webcasting rates can be found online here.
SoundExchange is the independent nonprofit performance rights organization representing the entire recorded music industry. The organization collects statutory royalties on behalf of recording artists and master rights owners for the use of their content on satellite radio, Internet radio, cable TV music channels and other services that stream sound recordings. The Copyright Royalty Board, created by Congress, has entrusted SoundExchange as the only entity in the United States to collect and distribute these digital performance royalties from more than 2,500 services. SoundExchange has paid out more than $2 billion in royalties since its inception. For more information, visit www.SoundExchange.comor www.facebook.com/soundexchange.