SoundExchange’s Royalty Rates for Streaming Increase

For radio broadcasters, the full decision of the Copyright Royalty Board setting webcasting streaming royalty rates to be paid to SoundExchange for the period 2021-2025 was released. Noted communications attorney David Oxenford wrote about the decision here when the rates were initially announced stating:

“The per-performance royalty increases to $.0021 for non-subscription streams, up from the current $.0018.  For subscription streams, the fee increases to $.0026 per performance from $.0023.  A performance is one song played to one listener.  So, if a streaming service plays one song that is heard by 100 listeners, that is 100 performances.

The minimum yearly per channel fee that each webcaster must pay at the beginning of each year is going up to $1000 for each channel that is streamed.  For each entity that is relying on this compulsory license, the aggregate minimum fee is $100,000.  That means that, each January, a company relying on this license will have to pay $1000 per channel (commercial or noncommercial) up to $100,000.  These yearly up-front payments will be credited against actual usage fees.  These minimums are an increase from the previous $500 per channel minimum and $50,000 up-front maximum payment that were in effect prior to January 1 of this year.”

The decision can be appealed to the US Court of Appeals but will become effective while any appeal is pending.

For more information about the decision from noted communications attorney David Oxenford click HERE.

To see a copy of the Copyright Royalty Board’s decision click HERE.

 

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