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Sep 25, 2017
FMC Responds to Internet Radio Royalty Rates Decision
On December 16, 2015, the Copyright Royalty Board issued its decision establishing non-interactive webcasting royalty rates for sound recordings in the 2016-2020 period. These rates represent a partial increase over the amount currently paid by digital radio services transmitting music via the Internet.
Future of Music Coalition CEO Casey Rae made the following statement:
These rates aren’t exactly a lump of coal. Over the past decade, we’ve seen billions of dollars in revenue generated by the explosive growth in webcasting. The new rates will allow artists and independent labels to participate in this success at a higher level. The fundamental value of popular Internet radio services comes from music creators, and we are glad this has been recognized in a healthy rate increase for non-subscription Internet radio services. Creators can feel good about how payout is structured under the statutory license, where revenue splits between artists and labels are fair and transparent, and payment to artists comes direct from SoundExchange.
We are concerned, however, that there does not appear to be a distinction in rates for small commercial webcasters. Digital music benefits from diversity, and services with more modest operations often help developing talent and niche genres find audiences while contributing to the overall revenue pool. If there isn’t an option for new entrants to perform music from a broad range of artists, we may end up with a less diverse digital landscape.
It also appears that by combining pureplay and commercial rates, incumbent broadcasters will receive a sizable reduction in royalty obligations for their digital transmissions. Commercial terrestrial radio already gets a free ride due to the fact that they are not required to pay performers a dime for over-the-air broadcasts. This is in stark contrast to the rest of the developed world. Congress should take swift action to close this loophole to support a positive global balance of trade and the equitable treatment of American creators. And artists and their allies should push back on consolidated corporate FM getting yet another unfair advantage.
Comments
3 comments postedThis law is such a bunch of
Submitted by John Michaels (not verified) on December 18, 2015 - 4:17pm.This law is such a bunch of crap ! It is just another way to line the pockets of the rich and push us small hobbyist broadcasters out of the picture totally !
I think the Music Mafia ( SoundExchange + RIAA ) are a bunch of liars and thieves trying to find anyway they can to get every cent they can !
I have direct dealings with some BIG name artists and I dont hear them complaining about us small guys promoting them ! We small broadcasters have been paying licensing fee's for YEARS !
Has FM ? No ! They havent ! But they get a slide , right ?
They get a free pass , is that it ?
No fines , no past due fees for years and years of Unpaid royalties from playing artists music , is that it ?
It's wrong ! Its offensive ! And it should be criminal for them to NOT have to pay what they owed for all the money they made off ads from stealing artists music for so many years !
But no , punish the small independent broadcaster , who gives a crap about them , they dont matter , right ?
Well This law stinks to high heaven and so dont the people who wrote it ! Your a bunch of con artists , thieves and criminal supporters !
What goes around comes around remember that !
Well, John Michaels, nobody
Submitted by Anonymous (not verified) on January 2, 2016 - 9:47pm.Well, John Michaels, nobody is going to listen to an argument in a tone such as yours. Though a solid front is needed against this lousy rulemaking. Who among us will lead a civil yet firm approach to the CRB and SoundExchange for the reinstatement of the small webcasters provision?
My tone comes from anger in
Submitted by John Michaels (not verified) on May 17, 2016 - 11:08am.My tone comes from anger in watching literally thousands of small stations and small businesses who were used by small station be cut off at the knees ! This government is pathetic ! Not only pathetic but add stupid and greedy pigs to that too ! All they want is to support their kids college funds with OTHER peoples hard earned dollars ! Ask the artists how much they really get from these corporate pigs ! Not much ! Time to knock out the middle guys who get paid for sitting on their fat asses and doing nothing !
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