Musicians’ collective getting less than asked for on webcasting tariffs

The Copyright Board of Canada issued a decision Friday that gives musicians and record companies a fraction of the money from webcasting that their collective had asked for. The board said in a news release that the tariff for non-interactive and semi-interactive webcasting would be 10.2 cents per 1,000 plays for commercial operators for files licensed by Re:Sound Music Licensing Co., and it would be 13.1 cents per 1,000 plays for CBC/Radio Canada. Non-commercial operators must pay a flat fee of $25 per year under this tariff. These rates, under what’s called Tariff 8, apply to the years 2009 through 2012. Information provided by the Copyright Board showed Re:Sound started the application for this first-time fee in 2008. Sylvain Audet, a lawyer for the Copyright Board, said in a phone interview that the rates that have been set automatically apply in the years after 2012 until a new tariff level is set. He added that some webcasters have already been paying Re:Sound for their webcasting of music and interest would apply to unpaid amounts due for the years this new tariff covers. The Copyright Board said in its release that Re:Sound had been seeking between $1 and $2.30 per 1,000 plays and “the rate set by the board is close to what the users participating in the hearing (including Pandora ) were suggesting.” A emailed statement from Pandora sent late Friday said: "We are encouraged by the ruling from the Canadian CRB. The CRB’s decision has potential to encourage investment in innovative technologies and increase consumer choice in Canada.” In a press release from Re:Sound, its president Ian MacKay said: “We are disappointed that the rates certified by the board do not reflect market rates in Canada and are a small fraction of the rates payable by the same services in the U.S. While the rates are low, the fact that they are based on a per-play formula ensures that rights holders are compensated for each and every use of their music, regardless of the business model of the particular service” Pandora, which stopped service in Canada in 2007 and has said it would not re-enter Canada under a per-play tariff. Gilles McDougall, secretary general of the Copyright Board, said in the release that “the total royalties generated for Re:Sound by the tariff certified today is about $500,000 per year.” The board said a “large” streaming service with revenue of about $170,000 a year would pay around $7,000 annually toward this tariff. CBC would pay about $36,000 a year, it said. The higher per-play rate assigned to CBC was “a reflection of a higher use of the Re:Sound repertoire by CBC than by commercial webcasters,” the Copyright Board said. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Musicians’ collective getting less than asked for on webcasting tariffs

Broadcast | May 16, 2014

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