“On Friday (June 11), the Copyright Royalty Board announced a royalty rate increase for digital performances of sound recordings over the Internet by nonexempt, noninteractive transmission services—or webcasters like Pandora and SiriusXM,” writes LB Cantrell on Monday’s (6/14) Music Row. “The ‘Web V’ rate increase for 2021 is $0.0026 per performance on commercial subscription services and $0.0021 per stream for ad-supported non-subscription services. The rates for the period 2022 through 2025 for both subscription and non-subscription services shall be adjusted to reflect the increases or decreases in the Consumer Price Index. Prior to the increase, the rates had been $0.0024 for paid subscription services and $0.0018 for ad-supported services. Although SoundExchange was aiming for an increase to $0.0031 for paid services and $0.0024 for ad-supported services in the Web V royalty setting proceedings, the organization’s President/CEO Michael Huppe is pleased with the ‘step forward toward building a healthier music industry.’ … This CRB decision means that creators will be compensated more fairly when their recordings are played on digital music services. While the rates are lower than SoundExchange and others proposed, they represent a step forward toward building a healthier music industry.”
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