Streaming Broadcasters Relieved By Royalty Break

Posted By James on Dec 17 2015 06:20 PM

Radio broadcasters who stream online will pay about one-third less in music royalties to SoundExchange starting in January, thanks to new rates issued by the Copyright Royalty Board (CRB) late Wednesday.

The new rate for commercial nonsubscription services, both broadcast and pureplay, in 2016 is $0.0017 per performance. That’s a substantial reduction from the $.0025 that most broadcast streamers had been paying but a 21% increase from the $.0014 that pureplay webcasters have been shelling out. Setting the same streaming rate for pureplays and broadcasters marks a new meet-in-the-middle rationalization in the market.

The new rate for commercial subscription services in 2016 is $0.0022 per performance, down from $0.0025.

Unlike the previous rate-setting, there is no annual step up in royalties. However, the CRB has, for the first time, built in a cost-of-living provision for the period 2017 through 2020 that will adjust the rate annually to reflect any increases or decreases in the Consumer Price Index. But there’s no so-called percentage override, which would have replaced the per-performance rate with a percentage of revenue payment when a webcaster reached a certain revenue threshold. “That’s one of the things that SoundExchange had asked for and broadcasters in particular had said would be very difficult to administer,” attorney David Oxenford tells Inside Radio.

The rate for noncommercial webcasters is $500 annually for each station or channel for all webcast transmissions totaling not more than 159,140 Aggregate Tuning Hours (ATH) in a month, for each year in the rate term. But should a non-comm channel exceed that number, the webcaster will pay the same $0.0017 per-performance rate as commercial broadcasters.

“It sounds like the Copyright Royalty judges have settled on $0.0017 as the right ‘price’ in all circumstances except for those involving commercial subscription streaming services,” attorney Scott Flick tells Inside Radio. “It therefore sounds like they implicitly reached the conclusion that broadcasters have been overpaying for streaming rights in the past.”

royalties CRB copyright

Recommended

Comments

BullsEye Radio Guest Commenter

The petition to rally against this biased and criminal decision made by the music mafia can be found here : http://www.gopetition.com/petitions/opposition-to-copyright-royalty-boards-decision-on-hr-1733.html The Copyright Royalty Board has handed down a decision after meeting behind closed doors with Pandora and coming to an agreement in reference to royalty rate increases ( http://www.loc.gov/crb/web-iv/amended-web-iv-terms.pdf ) that literally cripples any small webcaster anywhere in the United States of America ! In this agreement it states that the rate is $0.17 per 100 songs , per listener , raising rates so high that it makes it unaffordable by any broadcaster anywhere. While this bill HR1733 is good to force terrestrial radio to finally pay royalties which they had never done since the beginning of internet broadcasting, the original " Small Webcaster Settlement Act " ( SWSA ) has been eliminated making no provision whatsoever for hobbyist broadcasters who have no revenue to pay the outlandish fee's that would be incurred upon them by the elimination of this agreement. It also creates a monopoly which according to US law has been deemed illegal in the United States of America , allowing only major corporations like Pandora and iHeart Radio to control what is being heard on the internet. For years, small webcasters have been paying royalty fee's when terrestrial was not! And as a thank you for all the years of trying to do what was right , to be lawful and pay royalties that artists worldwide have worked so hard for and deserve, the Copyright Royalty Board has decided only the wealthy should be allowed to broadcast, thus ending small broadcasters tiny businesses all over the USA. Finally, this bill does not only affect the small broadcaster , but affects many businesses that small webcasters have supported as well thus eliminating literally MILLIONS of dollars of spending in business such as : * Streaming Servers * Chatrooms and servers * Messengers * Communities and servers * Games * Webhosting and servers * Banner Hosting services and many other services ! For years small broadcasters have been paying licensing fee's to stay legal on the internet, paying dues in appreciation for the hobby they so love. They have all had a dream of one day climbing that ladder to make a name for themselves, to achieve success. Some didn't have that dream, they just wanted to enjoy what they loved to do. Now that dream has been stomped on, spat on, and kicked to the curb by the very people we entrust to treat us fairly. It's shameful , unjust and should be considered criminal because of the results of this decision being made. It should not be allowed.

Leave A Comment