Copyright Royalty Board judges have made their proposal for the royalty rates for "preexisting subscriptions services" which may give a glimpse into the CRB's line of thinking for similar proceedings involving Sirius and XM.
The proposed royalty rates for "pre-existing subscription services" would be set at 7.25% of gross revenues. The proposal is now in the public comment period.
Now remember that this does not apply to satellite radio. As Satellite Radio TechWorld points out, there are two parts to the recent trial: one for pre-existing subscription services (like Music Choice) and the other is for satellite radio. Music Choice and SoundExchange reached an agreement shortly before the trial ended.
Richard Ades, one of SoundExchange’s communications consultants, further validated this for me: "Correct, this does not apply to satellite radio. Basically this is the rate that cable TV stations that also have music channels will pay."
"The rate proceedings before the CRB on the satellite rate were completed a few weeks ago and the CRB said a decision is expected no later than December 17th.”
[CRB (PDF) via Satellite Radio TechWorld]
Ryan, Lets hope this is a good sign for Sat Radio rates. It makes sense.