Settlement by NAB & SoundExchange on Streaming Rates

As most of you know, there is copyright liability for streaming your station's content over the web, including royalties for mobile apps and “smart” speakers.  SoundExchange is a non-profit corporation that has been designated by the copyright Royalty Tribunal to collect and distribute royalties for web-based performances on behalf of all recording artists and copyright owners.

The proposed settlement involves non-subscription-based digital audio transmissions, which encompass most of a radio station’s streaming services.  Currently, the rate is $0.0025 per performance.  Under the proposed settlement agreement, the rates would increase as follows:

• 2026 - $0.0028 per performance

• 2027 - $0.0029 per performance

• 2028 - $0.0030 per performance

• 2029 - $0.0031 per performance

• 2030 - $0.0032 per performance 

The proposal also includes a shortening of the monthly payment cycle from 45 to 30 days. However, the plan does propose to reduce and cap late fees.  There are a lot of details in the proposal that should be examined. The proposal must still be approved by the copyright tribunal.

You can access the joint NAB/SoundExchange press release here.

You can see the NAB/Sound exchange settlement proposal here.

A good discussion of the issue by noted communications attorney David Oxenford can be found in his broadcast blog here.