Posted by Glen Sears | December 21, 2015 11:20 am | No Comments
Story of the Week
Copyright Royalty Board Raises Pandora, Non-Interactive Music Streaming Rates By 20%
In a landmark decision, the U.S. Copyright Royalty Board today raised the rates that commercial non-interactive webcasters like Pandora effective January 1st, 2016. But the news could have been much worse for Pandora. Non-interactive webcasters will now pay 17 cents per 100 plays for those listening to free and ad supported streams through 2020, according to a statement from the royalty board. That’s up 20% from the current rate of 14 cents per 100 streams.
The decision can be considered a victory for both sides. SoundExchange had requested a rate of 25 cents per 200′ while Pandora had lobbied for a drop to 11 cents. In addition to Pandora, the rate applys to most internet radio stations including iHeartRadio, AccuRadio, Live365, Shoutcast and the webcasts of terrestrial radio stations.
Starting in 2017 the rates for both subscription and nonsubscription services can be adjusted to reflect the increases or decreases, if any, in the general price level, as measured by the Consumer Price Index. Relieved investors sent Pandora stock up 20% in after hours trading.
Read more on Hypebot: http://bit.ly/1IkDf3t
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Pandora’s Rate Ruling Reveals The Cracks In Streaming Economics – wWile on-demand services have little meaningful way of increasing revenue per user with the current model, Pandora has more than doubled revenue per user in 6 years while rights costs have declined in relative terms. Read More
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