Copyright management gave record labels and performers a modest cost of living increase on Wednesday (December 1) for select types of streaming platforms. In 2022, the royalty-per-stream rate paid by webcasters like Pandora and iHeartRadio for “non-interactive” streams will increase from 0.26 to 0.28 cents for subscription streams and from 0.21 to 0 .22 cents for unregistered performances. Non-commercial webcasts will pay 0.22 cents per stream.
Wednesday notification is the culmination of the latest CRB rate procedure, known as Web V, which regulates the royalties some streaming services pay to record labels and recording artists under Section 114, for performances. non-interactive performances and Section 112, “ephemeral” copies of recordings a platform needs to perform such performances. The three-judge panel decides some of the royalties that online, satellite and cable TV stations pay to record labels, performers, music publishers, and rights organizations. performed in the United States. Streaming services pay royalties to Parts 112 and 114 to SoundExchange, which equally divides royalties between rights holders and performers, with small outlays for session musicians and their management fees. SoundExchange.
Web V applies to services with a “reclining” listening mode similar to the traditional radio experience. Most streaming royalties come from on-demand, interactive services like Spotify and Apple Music that negotiate directly with rights holders for a license to play their recordings. Consumers are increasingly paying for services that allow them to choose a song or artist by order without restrictions. But US law allows a non-interactive service to pay a statutory lower fee without negotiating with the rights holder, as long as they limit a listener’s ability to choose an artist or song.
Web V’s decision affects a relatively small segment of the US recorded music business. According to the RIAA, the royalties for Seasons 112 and 114, including additional amounts paid by satellite station SiriusXM and cable broadcasters like Music Choice, were $487 million in the first half of 2021 – just seven. 8% of total digital revenue. However, some streaming services pay the Section 112 and 114 royalties directly to the rights holders and distribute the artist’s shares to SoundExchange.
Each year, the CRB calculates an adjustment to a predetermined royalty rate based on the annual change in the Bureau of Labor Statistics’ consumer price index for all urban consumers (CPI-U), a a measure of the prices paid for a range of goods and services (food, energy, health care costs, shelter, and transportation). On November 10, BLS announced CPI-U grew by 6.2% over the past 12 months – more than three times the annual average from 2016 to 2020. Until 2016, the CRB has established annual rates for each five-year period by specific rate procedure. In Web IV – covering 2016 to 2020 – and Web V, the CRB established rates at the beginning of the 5-year period and made annual adjustments using CPI-U.
https://www.billboard.com/pro/crb-royalty-rate-webcasters-web-v-2022/ CRB raises royalties for some streams in 2022 – Billboard