12/31/2022
Via - Itโs official: The Copyright Royalty Board (CRB) has accepted a (near) music industry-wide settlement that will improve โ royalty rates in the United States from January 1, 2023.
The settlement โ known as โPhonorecords IVโ or โ IVโ โ will see songwriters and music publishers paid a headline rate of 15.35% of a given interactive streaming serviceโs US revenue by 2027.
That rate will be โphased inโ, because โPhonorecords IVโ covers the five-year period between 2023 and 2027:
In 2023 (starting January 1), songwriters and publishers will be paid a headline rate of 15.1% of a US serviceโs revenue;
in 2024, this will increase to 15.2%;
in 2025, it will increase to 15.25%;
in 2026 it will increase to 15.3%;
and in 2027 it will reach 15.35%.
On Friday (December 30), the CRB published its โFinal Ruleโ Determination of the Rate Structure for Phonorecords IV โ which means these new rates will be effective in the US in time for Sunday (January 1, 2023).
Alternative to the headline rates under CRB IV, music publishers may be paid via a โTotal Content Costsโ calculation. This ensures that song rightsholders (publishers, songwriters) are paid a certain minimum figure in relation to what each service pays recorded music rightsholders in a year for their rights.
For example, for โStandalone Portable Subscription Offeringsโ (i.e. typical interactive music streaming subscriptions to , Music et al) US will from 2023 onwards โ thanks to CRB IV โ be paid the lesser of (1) 26.2% of โTotal Content Costsโ across all music rights or (ii) an aggregate amount of $1.10 per subscriber for the relevant period.
This formula will then provide an โall inโ royalty rate, from which โapplicableโ performance royalties will be subtracted to leave streaming services with a calculation that determines their mechanical royalty payout to publishers.
(You can read the finer detail of the CRBโs full โFinal Ruleโ of the new rates, published today, through here. -https://www.musicbusinessworldwide.com/files/2022/12/2022-28316.pdf