SoundExchange files for webcasting rate increase
On November 3rd, SoundExchange announced that it is seeking a 30% royalty for use of sound recordings in webcasting transmissions. This compares to a 5.5% royalty proposed by DiMA in its filings, and the current rate of 10.9% -- see prior post. No problem, just a 25 point delta to be resolved!
SoundExchange is also seek per-minimum rates, including a $1.37 monthly minimum per subscriber for subscription services. See the specifics of SoundExchange's proposal which was filed on October 31st with the Copyright Royalty Board. Once it determines the new rates, they will apply from January 1, 2006 through December 31, 2010.
SoundExchange is a nonprofit organization that administers public performance revenues for record companies and recording artists that arise from digital transmissions that are subject to compulsory licensing under Section 112 and 114 of the Copyright Act.
The compulsory license applies to public performances in four types of digital music services:
1. Eligible nonsubscription services (noninteractive webcasters and no-fee simulcasters);
2. Preexisting subscription services (residential subscription music services via digital cable or satellite television);
3. New subscription services (noninteractive webcasters and fee-based simulcasters); and
4. Preexisting satellite digital audio radio services (XM and SIRIUS).
Separately, in testimony before Congress on November 3rd, the RIAA advocated for a change to the Section 114 compulsory license to treat these different categories the same and to permit the FCC to protect over-the-air digital radio broadcasts. See RIAA chief Mitch Bainwol's testimony.
