ATTENTION WEBCASTERS...YOUR MUSIC ROYALTY RATES ARE GOING UP

[RADIO TRUTH]

The dental music site could be used as an example but, this applies to everyone wanting to webcast. If you saw the earlier post, the dental website averages about 15 to 20 listeners 24 hours a day. Here is what that means from a music royalty perspective in relation to Sound Exchange. You can pay a minimum payment of $600 per year and be considered a microcaster if your aggregate tuning hours are 18074 or less per year. This is the equivalent of an average of 2 listeners per hour, 24 hours a day, 365 days per year. Here is how aggregate tuning hours are calculated. If 100 listeners listen for 1 hour, that equals 100 aggregate tuning hours. Using the dental music site as an example, if their average is 15 listeners per hour, 24 hours per day, 365 days per year, that equals 131,400 aggregate tuning hours per year. They don't qualify for microcaster royalty rates. Their minimum royalty rate is $2000 per year and they are considered to be a small webcaster. They then would have to pay 10% of the first $250,000 that they billed and 12.5% of any billing over $250,000 up to $1,250,000. They would also have to do extensive music reporting which is exempt for microcasters that pay $600 per year. These are just the royalties to play the actual recordings. Now we get to publishing royalties which combining the minimum fees of ASCAP, BMI and SESAC means another $1000 to $1500 per year in minimum fees. Now we get to the part where the rates are going up. EMI has just withdrawn all of their music from ASCAP which means that in addition to all of the above, you have to pay an extra fee for publishing rights for all EMI owned music. EMI music means, among other important artists, the Beatles, Beach Boys, Jan And Dean, Fats Domino, Ricky Nelson and many many others. There is more bad news for webcasters. Where ASCAP and BMI are controlled under federal law as to what they can charge, both SESAC and now EMI can charge whatever they want to any webcaster. They also have the right to charge different fees for different services for royalties with no governmental controls. You, as a webcaster may pay one fee and another webcasting service may pay half what you do or twice what you do. SESAC and EMI can charge whatever they want. Unless you have a way to make some money from webcasting, it is downright idiotic to pay around $4000
per year or more in minimum royalty fees. Get your pen and check book ready webcasters.

 

[DToTheJ]

What about broadcasters that use the LoudCity service? (You know, like, errr, myself? : )

 

[RADIO TRUTH]

What about broadcasters that use the LoudCity service? (You know, like, errr, myself?

Assuming that services such as Loud City build all royalty payments into their fees for service, there are two possible outcomes.

1-Services such as Loud City will be raising their fees to cover the new royalty payments for the separation of EMI from ASCAP.

2-You will not be able to legally play any EMI owned music.

Something else that should be running through your mind. All of the major label conglomerates are hurting for money. They will all take note of what EMI has done. What is to stop another major label conglomerate such as UNI pulling all of their music from BMI and/or ASCAP and charging fees for it individually such as EMI has done? This will raise your royalty liability even higher. This is becoming an expensive hobby if you have no concept of how to make your webcasting service take in some cash and be profitable.

 

[DToTheJ]

Well, I've been saying the same monthly price (not to be disclosed) since signing up with them four years ago. I can't imagine that LoudCity will be suffering the same fate as SWCast, which was recently shut down after failing to pay royalties to many parties for five years. At any rate, if this is indeed the case, thanks for the heads-up - though I'll be waiting to hear from LoudCity for anything official... (Yes, talk stations can play music, too. : )