Trade organizations representing music publishers and songwriters, major record labels, digital music services and cell phone companies today announced a joint agreement setting mechanical royalty rates that they say are designed to support new digital uses and business models.
The five new categories:
- Mixed service bundles (for example, a locker service, limited interactive service, downloads or ringtones combined with a non-music product such as a mobile phone, consumer electronics device or Internet service)
- Paid locker services (subscription-based locker providing on-demand streaming and downloads)
- Purchased content lockers (a free locker functionally provided to a purchaser of a permanent digital download, ringtone or CD where the music provider and locker have an agreement)
- “Limited offerings” (subscription-based service offering limited genres of music or specialized playlists)
- Music bundles (bundling music products such as CDs, ringtones and permanent digital downloads)
More details on the new rates as the become available.