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Music News Recap: Pandora’s New Royalty Rates, BMG/RIAA Settlements, Apple Music Updates

Posted by Glen Sears | December 21, 2015 11:20 am | No Comments

Copyright Royalty Board raises royalty rates

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:

Pandora Pleased at CRB Ruling bu Direct Licenses Are Its Future – “As we noted last month, the CRB rates are likely to play a far less central role in Pandora’s business as we move toward the future. To fully unlock the global and functional potential of our business, we’re aggressively pursuing direct licensing agreements,” said McAndrews. Read More

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

Top Music Industry News Stories

Pandora and Warner/Chappell Sign Direct Licensing Deal – Pandora has cut a multi-year direct publishing deal with Warner/Chappell Music, making it the final of the three major music publishers to sign a direct deal with the web radio giant. Read More

BMG Awarded $25 Million in Potentially Landmark Case on U.S. Safe Harbours – The court said that BMG (at this point Round Hill was removed from the litigation) had sufficiently demonstrated that Cox had a deliberately slack approach to dealing with suspected infringers, so that it could keep selling those people internet services. Read More

RIAA Wins $17 Million Lawsuit Against Grooveshark Clone – The judge granted the RIAA and its major label members more than $13 million in piracy damages along with another $4 million for “willful counterfeiting,” reports TorrentFreak. Read More

Surprising Discoveries

SoundExchange Payments To Artists, Labels Fall 24% To $204 Million – Just hours before today’s important rate ruling by the U.S. Copyright Royalty Board, SoundExchange released figures showing $204 million in payments in the 3d Quarter. Read More

Apple Updates Music Data, Which Should Benefit Classical Composers and Performers – A seemingly minor update to iTunes should please Classical music fans and could mean bigger royalty checks for newer composers. Read More

Music Streamers Still Buy Music, Says Study – Streaming is sometimes thought of as replacing any need to buy music, but a recent study from the British Phonograph Industry suggests that streaming my actually be motivating consumers to purchase physical albums. Read More

Imogen Heap Inks ‘Forward-Thinking’ Publishing Deal, Planning ‘Fair Trade’ Payment System – “Things are moving incredibly quickly,” Heap says. “It’s like a tidal wave, moving in a really positive direction like it never has done before for the music industry.” Read More

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