SoundExchange Asks Copyright Royalty Board For Major Rate Increases
SoundExchange has submitted a new rate proposal and testimony in the SDARS III royalty rate proceeding from which the Copyright Royalty Board (CRB) will set rates for the years 2018-2022 for Sirius XM’s satellite radio service, as well as, cable/satellite TV music services provided by Music Choice and Muzak.
SoundExchange has proposed a rate that is the greater of either 23% of revenue or $2.48 per subscriber per month in 2018 with annual increases. The current rates for Sirius XM are 10.5% of Sirius XM’s “Gross Revenues” in 2016 and 11% in 2017.
For Music Choice and Muzak, SoundExchange has proposed a per subscriber per month rate starting at $ 0.019 per subscriber per month with annual increases. The current rate is 8.5% of Gross Revenues in both 2016 and 2017.
In support of the increases, SoundExchange submitted testimony from economists, other experts and representatives of recording artists, major labels and indie labels in support of its rate proposal.
This initial round of testimony is just one of several steps in the rate proceedings. SoundExchange and the other parties will now be able to examine each other’s rate proposals and testimony and submit rebuttal testimony by February 19, 2017. The CRB will hold a hearing beginning April 19, 2017, which will last several weeks. After final briefing by the parties, the CRB will issue its rate determination by December 15, 2017.
You can read the full rate proposal here.