Fear and Loathing in Royalty Rate Setting


2 comments posted

The first thing we do - tell

Submitted by Thomas Giannini (not verified) on November 2, 2014 - 12:13pm.

The first thing we do - tell Pandora to stop it's non-subscription model which creates an artificially too low rate in MHO.


Submitted by Dean Hajas (not verified) on January 1, 2016 - 1:58pm.

DEAN HAJAS SAYS THE CRB HAS MADE THE CORRECT DECISION to raise the Royalty rates. The claim by 365 Live Radio of having over 5000 on line radio stations, with a total Royalty payout of a $1,000,000.00 is the reason why it's time to raise and secure rates. I did the math for total payouts to the Intellectual Property owners, and it hovers between $40.64 at $860,000.00 of payout and 20,000 potential light to heavy rotation artists. The revenues experienced by the same 5000 companies has not been disclosed, but you can bet the Ad load payout is enormous by comparison.
My suggestion is two fold. Since Cars are one of the greatest of listenership potential, a license needs to be negotiated by Universal Music Group / CRB / and it's Societies to be rolled into the selling price of a vehicle. The owner registers the car, just like you do an iPad, iPhone etc...and you get a certain amount of licensed credits to choose from. Once you have used up that credit, you have the option to purchase more user credits.....Simple. Secondly, Streaming on line radio stations can utilize similar platform and model with modifications to allow the artist (for a nominal fee) to decide which radio stations they want their music associated with, and decide on the rotation of their music based on a pay scale that reflects Hot Clocks, Paid prescriptions, and ad association. If a song attracts specific Ad campaigns for instance Heineken beer with German metal band, then the band should share in that profit associated with the ad Hot Clock attraction. Based on percentage scale that the band invests in the clock they choose and the rotation they decide to pay for. This is the exact type of previous Large label business model, with a twist, that it's now in the Independent Artist hands to negotiate. We don't require Large Corporations to Negotiate on our behalf, we just require a contract that is not like the ones I read on 365 Live....Those are not in favour of any artist, and should never be agreed to just as a potential platform for music.

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