This week the Copyright Royalty Board announced new webcasting rates for 2016 through 2020. The new rates determine what non-interactive services (e.g. iHeartRadio and Pandora) pay for online streaming.
The CRB determined that the new rate will be 17 cents per 100 streams, compared to the current 14 cents per 100. During the hearings to determine the final rates, Pandora had asked for a drop to 11 cents, while SoundExchange, the organization that collects royalties from non-interactive digital services and distributes them to artists and rights holders, had urged an increase to 25 cents per 100.
The new decision is being viewed somewhat positively by webcasters, labels, and digital services. Interestingly, Wall Street likes the decision, too. Pandora?s stock value shot up 13.7% the day after the decision was made. According to Digital Music News, this is because Wall Street likes certainty.
However, SoundExchange has made it clear that it thinks the new rates should be higher: ?We believe the rates set by the CRB do not reflect a market price for music and will erode the value of music in our economy,? the organization said in a statement. ?We will review the decision closely and consider all of our options.?
– Pat Welsh