Recording Companies Profits Vs. Streaming Music Essay

Recording Companies’ Profits vs. Streaming Music On Wednesday, December 16, 2015, a panel of federal judges increased the royalty that free Internet radio services like Pandora will pay record companies for the next five years, a decision that has been closely watched in the music industry and on Wall Street. A summation of the decision was posted by the panel, the Copyright Royalty Board, Pandora and other webcasters like it, will have to pay record companies 17 cents for every 100 times they play a song when they stream music to listeners who do not pay for subscriptions. The current rate is 14 cents. The decision to take effect this year 2016 requires that Pandora, one of the largest internet radio services, pay millions more in royalties to performing artists and record label companies for using their music on their radio station. Pandora apparently paid 44% of its revenue in royalties last year, which totaled more than $400 millions. Although disappointed with the decision made, which was much lower than the 25 cents requested per 100 plays, Sound Exchange, a nonprofit licensing agency, representing the record companies expressed disappointment with the decision. It stated that â€Å"It’s only fair that artists and record labels receive a reasonable market price when their music is used.† â€Å"We believe the rates set by the Copyright Royalty Board do not reflect a fair market price for music and will erode the value of music in our economy. Sound Exchange stated that theyShow MoreRelatedThe Origin Of The Word Music Essay2320 Words   |  10 PagesORIGIN OF MUSIC We first will take a look at the word music the origin of it, the way we know it today, yesterday and more than likely its future beings, tomorrow. 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