SoundExchange Statement On Web IV Rate Decision
The Copyright Royalty Board (CRB) set the rates for webcasters using the statutory license. In 2016, the rate for nonsubscription services is $0.0017 per performance, and for subscription services, it is $0.0022 per performance. For the remainder of the term (through 2020), the prices will be adjusted according to the Consumer Price Index. SoundExchange issued the statement below in response to the decision:
“SoundExchange presented a strong case on the fair market rate for music played by webcasters utilizing the statutory license. Our rate proposal used data from dozens of marketplace deals and was based on what willing buyers and sellers would agree to.
“Music has tremendous value and is the core foundation of the webcasting industry. It’s only fair that artists and record labels receive a market price when their music is used. 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. We will review the decision closely and consider all of our options.
“Additionally it is deeply disappointing to see that broadcasters are being given another unfair advantage. In their terrestrial business they do not pay a dime for the recordings they use and now this $17B industry will receive an additional huge subsidy on the music they use in webcasting.
“As music advocates, SoundExchange represents the entire recorded music industry and we remain united on the principle that recording artists and rights owners deserve a fair market rate when their music is used.
“SoundExchange appreciates the efforts of the CRB judges and staff throughout this process.”
Source: SoundExchange
