10-10-14
As John Garziglia points out in the previous story, broadcasters are now paying $0.0023 per performance, with a minimum of $500 per year. In its filing with the Copyright Royalty Board SoundExchange proposes the rate, beginning in 2016, should be $0.0025 per performance and escalate up every year, or be 55% of revenue, whichever is greater. The NAB is fighting to lower the rates. Most broadcasters say they are not making any money on streaming today and higher rates could force them to abandon streaming altogether.
SoundExchange CEO Michael Huppe says, ?Digital radio services, and the revenue they generate, have become a critical part of the music ecosystem. For more and more consumers, streaming is becoming the preferred path to access music, and webcasting rates must reflect this market and economic reality. SoundExchange is guided by a single principle ? all creators deserve fair compensation, whenever and wherever their music is used. We will continue fighting to ensure this happens.?
Here's a chart of what SoundExchange proposes:
2016 - $0.0025 or 55%
2017 - $0.0026 or 55%
2018 - $0.0027 or 55%
2019 - $0.0028 or 55%
2020 - $0.0029 or 55%
Take a look at the SoundExchange filing HERE
(10/10/2014 10:23:37 AM)
It's not just the Sound Exchange. Everybody wants you to pay more for everything everywhere. Grab every penny you've got and to hell with you.
(10/10/2014 9:28:56 AM)
SoundExchange wants majority ownership of our streaming operation at 55% of the revenue. At this point, that's 55% of the hole in a donut for us. It wasn't clear whether that 55% was for streaming or all over-the-air revenues. If they want our over-the-air revenue, we'd best give them a quick course in Radio Management!
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