U.K. authors rights body PRS for Music has announced new performance right rates for streaming services in the United Kingdom, effective July 1.
The headline royalty rate will increase from 8% to 10.5% of a streaming site’s revenue, while the per-stream minimum is to be reduced from 0.22 pence (0.35 cents) to 0.085 pence (0.13 cents). The collecting society’s board approved the rates on May 20 after a seven-month consultation period with key stakeholders, major and independent music publishers, and the wider music industry.
The changes are incorporated in the new Online Music Licences package drawn up by PRS for Music to replace the Joint Online Licence. The latter was created by PRS for Music (formerly the MCPS-PRS Alliance) and a group of online music companies, and endorsed by the Copyright Tribunal in July 2007 (Billboard.biz, July 16). The new rates will apply for three years.
“We believe these new streaming rates will stimulate growth in the digital music market and will benefit our licensees and our members,” said Andrew Shaw, managing director of broadcast and online at PRS for Music, in a statement.
“The Copyright Tribunal,” he added, “established the principle of a per-stream minimum to protect creators; maintaining this principle will ensure that writers, composers and music publishers continue to be rewarded every time their music is enjoyed. 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. This is a good deal for music creators and for music lovers.”
Earlier this month, PRS announced that its rates for download and subscription-funded services — which also form part of the Online Music Licences — will remain unchanged.