BigChampagne's Ultimate Chart (a/o February 10th):
1. “What Doesn't Kill You (Stronger),” Kelly Clarkson
2. “Set Fire to the Rain,” Adele
3. “Turn Me On,” David Guetta
4. “Rack City,” TYGA
5. “Good Feeling,” Flo Rida
6. “Smooth Criminal (Glee Cast Version),” Glee Cast
7. “Young, Wild & Free,” Snoop Dogg & Wiz Khalifa
8. “Domino ,” Jessie J
9. “Sexy and I Know It,” LMFAO
10. “Ass Back Home ,” Gym Class Heroes
What happens when two of the largest digital music services - YouTube and Pandora - are completely shut out of a market? Both services have voluntarily exited the UK, based on unworkable royalty demands, and that is a problem.
But things are changing, and these mega-players could return. On Tuesday, PRS for Music drastically dropped its performance royalty rates, potentially opening the door to outcasts like YouTube and Pandora. The updated rates, effective July 1st, happened after an "extensive seven month consultation period with key stakeholders, major and independent music publishers and the wider industry," the group noted. PRS for Music officially agreed to the changes on May 20th.
So what are the changes? Specifically, the PRS is increasing rates on revenues for on-demand services from 8 percent to 10.5 percent, while lowering the per-stream minimum from 0.22 pence (£0.0022 or $0.0035) to 0.085 pence (£0.00085 or $0.00135). Rates for download services and subscription services will remain the same, and pure webcasters are also receiving per-stream decreases and revenue percentage increases.
For on-demand providers, per-stream shift represents a 61.4 percent reduction, a move that could allow more digital music services to survive. "As new entrants join the market and existing providers expand, music creators will reap the rewards by sharing in the success that their talent is generating," said Andrew Shaw, managing director of Broadcast and Online at PRS for Music.
The adjustments seem sensible, and reflect an industry adjusting to lowered digital revenues. But are the rates sensible enough for companies like YouTube? The company has yet to formally respond to the matter, and negotiations between YouTube and PRS remain ongoing. Others, including Pandora, are undoubtedly assessing the new terrain.
Comments Closed
OUR SPONSORS
© 2011 All Rights Reserved
Follow Us