As a percentage of revenue, new satellite and cable radio royalties still wildly below webcast rates

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Issue Date: 
Dec 17 2012 - 12:40pm

From Issue:

Sound recording royalties for satellite radio service SiriusXM will rise from 8% of gross revenue to 9% in 2013, and continue to grow 0.5% each year (to 11% in 2017). The Copyright Royalty Board also set the new statutory rates for cable television music services. Those rates will rise from 8% of gross revenue now to 8.5% for 2014 through 2017.

The CRB announced its determinations late Friday.

This royalty is only for copyright sound recordings (i.e. not compositions), and only for satellite transmissions or cable TV (not webcasting). Most webcasters (including satellite radio and cable television radio when they stream online) pay royalties on sound recordings at a "per-performance" rate. For even the most successful webcasters, this royalty can amount to more than 50% of a company's gross revenue.

Read the brief CRB announcement of rates here.

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