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Net radio music royalties soar

p2pnet.net news:- Details on royalties to be paid by Net radio stations for streaming music for 2006-2010 have been released by the US Copyright Royalty Board.

“And the rates are going up significantly over the next few years,” says David Oxenford on Broadcast Law Blog.

“This is scary,” says Richard in a comment post. “I would rise from $140 a month combined in a group license to $1,500 a month to Soundexchange alone!

“NO breaks for small webcasters! Uggg. And retro-active.”

Oxenford, “explains that the 2007 rate essentially translates to one-tenth of a penny per song per listener,” says Radio Ink. “Extrapolating from there, a webcaster will have to pay one penny for every ten listeners who hear a single song.”

Meanwhile, on the inccrease, “More importantly, especially for smaller entities, there are no royalty rates based on a percentage of revenue as were in effect for small webcasters under the Small Webcasters Settlement Act,” says Oxenford, going on:

“Instead, all royalties are given as a per performance number, i.e. a payment for each song every time a listener hears that song.”

Broadcast Law says the Board essentially adopted the royalty rate advanced by SoundExchange (the collective that receives the royalties and distributes the money to copyright holders and performers) in the litigation. It denied all proposals for a percentage of revenue royalty (including a proposal that SoundExchange itself advanced). The Board also rejected any premium for streams received by a wireless service, as SoundExchange had suggested.”

The rates, “for commercial webcasters, including broadcasters retransmitting their over-the-air signals on the Internet,” as posted on Broadcast Law, are:

2006 – $.0008 per performance
2007 – $.0011 per performance
2008 – $.0014 per performance
2009 – $.0018 per performance
2010 – $.0019 per performance

The minimum fee is $500 per channel per year, says Oxenford, pointing out there’s no clear definition of what a “channel” is for services that make up individualized playlists for listeners.

For noncommercial webcasters, the fee will be $500 per channel, for up to 159,140 Aggregate Tuning Hours (one listener listening for an hour) per month. Noncommercial webcasters who exceed that level pay at the commercial rate for all listening in excess of that limit.

Slashdot Slashdot it!

Also See:
Broadcast Law BlogCopyright Royalty Board Releases Decision – Rates are Going Up Significantly, March 2, 2007
Radio InkNew Copyright Fees Set For Internet Radio, March 3, 2007

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2 Responses to “Net radio music royalties soar”

  1. Reader's Write Says:

    You think that’s scarey?
    Scarey is going to be the RIAA trying to figure out how to bill all these stations.
    Have you seen the amount of on-line stations?
    add to that the many countries there in.

  2. Reader's Write Says:

    It will be like p2p, U.S. on-line stations will be put out of business and non U.S. stations will tell them to fuck off.

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