MusicDish e-Journal - November 20, 2017
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

SoundExchange Proposes Fair Royalty Rates From Satellite Music Services For Artists And Record Labels
By Mi2N
(more articles from this author)
2006-11-10
Comment | Email | Print | RSS

SoundExchange, the non-profit organization that collects and distributes royalties from various digital music services on behalf of artists and record labels, submitted its case to the Copyright Royalty Board ("CRB") charged with setting rates that XM & Sirius satellite music services will pay for their streaming of sound recordings during the next six-year license term, ending in 2012.

Recognizing that music forms the foundation for the two satellite services, SoundExchange's request for royalties beginning at 10 percent of revenues and gradually increasing over the six-year term is a reasonable rate based on the findings of several leading experts.

Today's submission is the beginning of a 12-18 month process which will result in a determination by the CRB of what it believes is a fair payment for the use of artists' and record labels' sound recordings. "The essence of satellite radio is music," said John Simson, Executive Director of SoundExchange. "Without music, XM and Sirius would not exist. We are asking simply that these companies recognize our substantial contribution to their business by paying a fair price to artists and record labels for their creativity and investment."

SoundExchange has included with its filing expert testimony from economists, technologists and survey experts. The testimony analyzes the value of the recordings using a number of factors including open market rates, the value of music to the satellite services' business model, rates paid by the satellite services for non-music content relative to value to subscribers, comparison with other digital music royalty rates, the value placed on sound recordings by customers, and survey data demonstrating that customers place music far above any other content when evaluating the value of satellite music services.

In a survey submitted to the CRB and conducted by Yoram Wind, marketing and survey expert and author of 21 books on these topics, and Professor of Marketing at The Wharton School at the University of Pennsylvania, almost half of all satellite radio subscribers surveyed (43 percent) said they would cancel their service (or would not subscribe in the first place) if satellite radio lacked music. That is triple the number of respondents who would cancel if any other type of programming were unavailable.

Simson noted that Congress allows digital streaming services like XM and Sirius to perform artists' work without the permission of the artist or the copyright owner. It is therefore critical artists receive fair payment since they do not have the option of withholding their sound recordings, a fundamental right in a typical negotiation. "The rate which the satellite radio providers seek in their submission is demeaning to artists and labels," said Simson. "When independent research shows music is the core of their business, and when they have the ability to pay $500 million to Howard Stern (and hundreds of millions to other non-music content providers), it is more than a stretch to regard their proposal as serious or fair. They clearly want to pay less than the true value of these works, forcing artists and copyright owners to subsidize their acquisition of other content."

Simson added, "Our rate proposal establishes a revenue sharing system that bases payment to artists and record labels on the success of these services. If they do well, payments increase; if they are less successful, the artists and labels are paid less. There can be no better evidence that we view this relationship as a partnership, and ultimately want XM & Sirius to flourish, but we want what's fair."

SoundExchange is jointly governed by artists and record labels and has a strong record of protecting the interests of artists and record labels. Since its first distribution in 2001, SoundExchange has collected and distributed more than $53 million in digital royalties. "SoundExchange has given me hope that there will be someone out there keeping track of the plays of my music and I know I will be compensated. I make the majority of my living from live performances and now I am more inspired to write and release music to the public since I know SoundExchange will have my back," said recording artist Kristine W.

"Artistic excellence results from tremendous personal sacrifice, great investment and unparalleled dedication. These creators deserve to get paid fairly for their efforts," added Simson.

Related News from Mi2N:
» SoundExchange Proposes Fair Royalty Rates From Satellite Music Services For Artists And Record Labels


Home » News Beat » SoundExchange Proposes Fair Royalty Rates From Satellite Music Services For Artists And Record Labels
Permalink:http://www.musicdish.com/mag/?id=11407
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

News Beat

» Women Make An Impact On The 2018 MPG Awards Shortlist

» Two-Sides of Copyright Finance: Sound Royalties & Kobalt

» Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes

» Europe's Digital Music Leaders Form Alliance

» Deezer Becomes Miami Dolphins' Official Music Partner

News Beat Directory



» [2017-11-13] Women Make An Impact On The 2018 MPG Awards Shortlist; Nearly A Quarter Of Those Named This Year Are Female, Proving That Music Production Is No Longer A Bastion For The Boys

» [2017-11-13] The Nashville Musicians Sound Healthcare Plan Rolls Out; Sound Healthcare & Financial Announced The Formation Of A True Group Health Insurance Policy Plan For Musicians And Industry Professionals

» [2017-11-09] Streaming & Listening Diversity - Spotify Case Study; Will Artists Have An Easier Time Finding An Audience, Or Will Streaming Focus Global Attention On A Small Number Of Stars?

» [2017-11-09] Two-Sides Of Copyright Finance: Sound Royalties & Kobalt; Sound Royalties Unearths Millions In Undistributed Royalties While Kobalt Launches Fund To Invest In Music Copyright

» [2017-11-08] Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes; ROLI Chief Creative Officer, Live Nation Sweden Managing Directors, Music Glue Global Head Of Business Development, BBR Music Group VP Of International, Warner/Chappell Music Spain Managing Director And Blue Night Director Of Music Clearance

» [2017-11-08] Europe's Digital Music Leaders Form Alliance; European Digital Music Companies Launch Of Digital Music Europe

» [2017-11-05] Pandora Subscriber Base Grows To Over 5 Million; Pandora Premium Paid Subscribers Cross The 1 Million Milestone In October 2017

» [2017-11-05] Hybrid Studios Announces Online Mastering Services; Engineers Billy Klein And Brian Frederick Spearhead New Online Mastering Effort Through OC Studio

» [2017-11-05] Music Industry Betting On VR & AR For New Revenue; The Music Industry Is Making An Early Bet On VR & AR To Create New Revenue Streams Across All Their Lines Of Business

» [2017-11-04] Sound Royalties Unearths Millions In Undistributed Royalties; Nearly $14 Million In Undistributed Royalties Has Been Found By Music-focused Finance Firm Sound Royalties

» [2017-11-02] MusicDish*China October China Label Music Releases And Charts; Several Tracks From October Releases Have Charted On Chinese Music Portal Kanjian ING Top 10 Weekly Chart

» [2017-11-01] Deezer Becomes Miami Dolphins' Official Music Partner; Deezer's Flirtation With The Sports World Appears To Have Just Begun
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

LOVE MY COUNTRY! Is The Ultimate Compilation Series Featuring 20 Hot New Hits

Getting Restless

Your Favorite Color Releases "Heartache"

Melvin Alan Album "Wonderful Life"

Jean Louisa Kelly Presents A Personal Collection Of Songs From The American Standards And Musical Theater

halie and the moon Signs Distribution Deal For Asia With JVC Kenwood Victor Entertainment

Deadline Looms - The 14th Annual Acoustic Music Awards



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2017 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships