Federal Judges Expected To Raise The Royalty Rates On Webcasters
April 23, 2015 at 3:18 AM (PT)
The battle over streaming music royalties will be heard by federal judges next week.
THE NEW YORK POST reports, "PANDORA is asking the COPYRIGHT ROYALTY BOARD, a government body that controls what music labels can charge for streaming songs, to reduce the fees it pays to music labels -- its biggest expense. On the other, SOUNDEXCHANGE, a licensing group that represents the major music companies, is asking for a significant hike in recorded royalties."
On the schedule MONDAY, APRIL 27th, is the hearing before a panel of three federal judges appointed by THE LIBRARY OF CONGRESS.
“It isn’t a question of whether rates will go up but how much,” said one source close to the record labels to THE POST. “Expect it to be at least a 40% increase.”
Last month, PANDORA CFO MIKE HERRING predicted, “The case we’ve made in front of the CRB is a solid one, and we’re confident that we’ll get a reasonable rate.”
"Some WALL STREET analysts are predicting that the new rate will be a compromise -- or around 20 cents per 1,000 streams," notes THE POST. "RICHARD TULLO, an analyst for ALBERT FRIED & CO. who has a sell rating on PANDORA ahead of its quarterly report THURSDAY, said streaming rates 'could be 10% to 30% higher by the end of 2016,' adding, “The rate paid today is about 40% less than what would have been as the SOUNDEXCHANGE cut the rate to about 14 micro pennies from about 23 micro pennies.”