Small Webcaster

This is the category for commercial webcasters earning less than $1.25 million in annual Gross Revenues (including Gross Revenues of their Affiliates, Third Party Participation Revenues, and Revenues from a New Subscription Service), and is only for nonsubscription transmissions. Small Webcasters may simultaneously operate separate subscription services using the Commercial Webcaster (CRB) rates and terms. Full rates and terms are described at 74 Fed. Reg. 9293, 9302 Appendix C (Mar. 3, 2009).

2016 – 2020

This category is not part of the 2016-2020 webcasting rates and terms. Applicable services may wish to operate in 2016 as a Commercial Webcaster (CRB) or a Broadcaster.

1) Notice of Election:

  1. Due Date. Services must annually elect (using the minimum fee Statement of Account) prior to January 31 each year. New services beginning streaming on or after February 1 may elect concurrent with their timely submission of the minimum fee Statement of Account form.
  2. Binding Nature of Election. Services, upon election, are required to operate within the category for all eligible statutory licensing activity through the end of the applicable year.

2) Eligibility Requirements:

Small Webcasters must:

  1. timely elect,
  2. not be a “noncommercial” service,
  3. not exceed $1.25 million in worldwide annual Gross Revenues for the applicable year, and
  4. only create nonsubscription transmissions. (Small Webcasters wanting to create subscription transmissions must operate a separate commercial webcaster (CRB) service).

3) Minimum Fees and Minimum Fee SOA:

  1. Amount: $5,000, if expecting annual Gross Revenues in excess of $50,000. Otherwise, $2,000. Payment must be accompanied by a signed and completed minimum fee Statement of Account.
  2. Recuperability of Minimum Fee: The minimum fee is credited against monthly liability accrued within the same calendar year. Services do not submit additional payment for that year until they have exceeded the minimum fee.
  3. Due date: Annual, on or before January 31. New services beginning streaming on or after February 1 must submit payment within 45 after the end of the month in which initial streaming occurs.

4) Liability Rate, Payment, and Monthly SOA:

  1. Rate: The “greater of” the below year-to-date calculations:
    1. 10% of the first $250,000 in Gross Revenues, and 12% of any Gross Revenues in excess of $250,000, during the applicable year.
    2. 7% of Expenses during the applicable year.
  2. Payment and Statements of Account: Services must submit a Statement of Account each month, calculating the liability owed for that month, within 45 days after the end of that month, accompanied by any payment indicated on the form (if any). Statements of Account must be certified with a handwritten signature.
    1. If no payment is owed, Statements of Account may be submitted via e-mail as a PDF to royaltyadministration@soundexchange.com, or via fax to 202.640.5883.
    2. If payment is owed, the Statement of Account (accompanied by payment) should be mailed, if using regular mail to SoundExchange, Inc, P.O. Box 75202, Baltimore, MD 21275-5202. If you are using overnight delivery send to: Lockbox Services 75202 Wells Fargo Bank 7175 Columbia Gateway Drive Attn: SoundExchange, Inc., Lockbox 75202 Columbia, MD. Tel.: 1-800-289-3557.
    3. Payment must be in the form of a check, money order, or direct bank wire (or ACH payment). For assistance in delivering money via bank wire, please contact SoundExchange at 202.640.5858 or e-mail us at royaltyadministration@soundexchange.com.

5) Reports of Use: Services are required to submit Reports of Use (i.e. the “playlists”) as described in 37 CFR 370.4.

  1. Frequency of Submission. Monthly, within 45 days after the end of each month.
  2. Content. Reports of Use must contain a complete census of all sound recordings accruing performance liability within the month.
    1. Identifying Information. Each track listing must include the following:
        1. Name of Track as listed on the recording
        2. Name of Artist as listed on the recording
        3. ISRC as listed on the recording, or if unavailable, the combination of both the album name and the marketing label as listed on the recording
        4. Audience Measurement. Each track must have associated with it the amount of “actual total performances” accrued by the track within the month.

6) Format and Delivery Specifications. Reports of Use are required to be electronically submitted in one of the following ways:

  1. E-mail to reports@soundexchange.com. This method is preferred for all services if the Report of Use contains fewer than 200,000 lines.
  2. FTP. This method is preferred for services submitting Reports of Use containing greater than 200,000 lines. To request a login ID and a password, please e-mail ftp@soundexchange.com.
  3. CDR, DVD-R, or portable USB drive. If a service is unable to submit Reports of Use via e-mail or FTP, they may be delivered physically using the above media to SoundExchange, ATTN: Royalty Administration, 733 10th St., NW, 10th Floor, Washington, DC 20001.

7) Late Payments and Monthly SOA

The late fee program is designed to catch all late payments, any statement of account or any report of use on a month to month basis. A Licensee is required to pay a late fee of 1.5% per month (0.75% for Business Establishment Services; increase to 1.0% effective January 1, 2014) for any payment and/or statements of account received by the collective after the due date. Late fees accrue from the due date of this payment, statement of account or report of use until payment and the related statement of account are received by the collective.

Get more information about Reporting Requirements