New Royalty Rates Set

The Copyright Royalty Board this week announced new music webcasting royalty rates for the next five years.  These fees, collected by SoundExchange, apply to “non-interactive” streaming services, meaning those Internet radio platforms in which users cannot select certain songs to be played on demand.  While Pandora has the largest stake in this announcement, radio stations that simulcast music online also have an interest.  In general, higher royalty rates discourage increased investment in Internet platforms by over-the-air radio stations.  Under the new rates, commercial nonsubscription services (like broadcasters) will pay $0.0017 per-performance in 2016.  Noncommercial stations will pay this rate for webcasting after it surpasses a cap of 159,140 “Aggregate Tuning Hours” covered by a $500 annual fee.

By Aaron Mercer, Vice President of Government Relations

Published: December 18, 2015

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