Copyright Royalty Board Raises Broadcasters' Streaming Rates For 2021, No Break For Simulcasters

Rates Rising

The COPYRIGHT ROYALTY BOARD (CRB) has increased the streaming royalty rates for broadcasters, raising the rate for commercial nonsubscription services -- including radio station streams -- from $0.0018 to $0.0021 per performance in 2021, a 17% increase, with a single-company maximum of $100,000 per year, while commercial subscription services will pay $0.0026, an 8% increase. Rates from 2022 through 2025 will be determined based on increases or decreases in the Consumer Price Index for All Urban Consumers (U.S. City Average, all items) (CPI-U) with the NOVEMBER 2020 release as a base number.

Noncommercial webcasters will pay $1,000 per year per channel up, to 159,140 Aggregate Tuning Hours (ATH) in a month, and if a noncommercial webcaster exceeds that ATH level in a given month, the excess will be charged at $0.0021 per performance in 2021, with the same adjustment based on the CPI for 2022-25. The rates are retroactive to the beginning of 2021. The NATIONAL ASSOCIATION OF BROADCASTERS (NAB) had lobbied for a lower rate for radio stations that simulcast 100% on their streams, but the CRB's WEB V release did not address the NAB proposal.

SOUNDEXCHANGE Pres./CEO MICHAEL HUPPE said, “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.

The decision reflects the compelling case made by SOUNDEXCHANGE  and our allies that we need to close the gap between what artists and rights holders have been paid and what they should be paid for their work. We haven’t fully closed that gap, but today is a step in the right direction."

HUPPE went on to say, "As an organization representing the entire recorded music industry, SOUNDEXCHANGE is committed to the principle that artists and rights holders should be respected for their work. That includes when their music is played on AM/FM radio. The music industry is in a state of transformation, and that means each player in the industry – creator and streaming platforms alike – need to evolve, as well. SOUNDEXCHANGE  will continue to drive that evolution, because it knows that a healthy music industry is integral to society.

We also want to recognize the tireless efforts and dedication exhibited by the CRB judges and staff throughout this process."

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