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CRB Raises Royalty Rate For Webcasters

June 14, 2021/by LB Cantrell

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.

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.” His full statement is below:

“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.

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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LB Cantrell
LB Cantrell
LB Cantrell is Editor/Director of Operations at MusicRow magazine, where she oversees, manages and executes all company operations. LB oversees all MusicRow-related content, including the publication’s six annual print issues and online news. She is a Georgia native and a graduate of the Recording Industry Management program at Middle Tennessee State University.
LB Cantrell
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