Streaming rates cut to lure back YouTube, Pandora
Online services have welcomed a new rate schedule that will cut the cost of music streams in the UK.
The PRS yesterday cut the cost of royalties owed for streaming a song from 0.22p to 0.085p. The headline rate rises to from 8 per cent to 10.5 per cent of revenue, supposing the company has any.
Steve Purdham, chief executive of the ad-supported jukebox We7, told us that he expected the 60 per cent cut by the PRS would shave 10 per cent from the cost of delivering music legally.
"This is the first true indication that the main barrier to legal music is the economic one. That's why Pandora and YouTube withdrew from the UK."
The PRS rate includes mechanical copyright royalty - because a stream is considered a copy. Payments to the performer or label take the overall rate to about a penny, he said. Pandora closed down UK streams early last year, while Google's YouTube went nuclear, and yanked its music videos in March.
The rates take effect on July 1 and don't apply to simulcasts, subscription services or download stores.
Neither Pandora nor Google have yet commented on the move. Not everyone was sympathetic to Pandora's pleas when it pulled out of the UK last year, but in January the popular on demand radio service introduced advertising - and a subscription rate of $35. ®
Remember to never underestimate the power of a short 3.5mm cable connected between line-in and line-out, oh how I remember the good ol' days of radio piracy...
"... write 50 pence as either £0.50 or 0.50p ..."
There's a Verizon joke in there somewhere. Does the UK also get confused distinguishing between 0.02 dollars/pounds and 0.02 cents/pence?
Sadly I've got to agree
The music industry around the world is missing the trick and have been for years. The opportunities to capitalize on all this is there waiting for them. However their greed, fear, and short sighted business model from the 1970's wont let them take advantage of it. The ones I feel sorry for in all this are the artists both in the spotlight and behind the scenes as it's them who really get screwed over. Screwed over the worse by the very people who are supposed to be representing them. However there is light at the end of the tunnel. I know a great many folks who are forgoing traditional channels and simply doing it themselves. No complex licensing schemes none of that other nonsense simply them selling their music at a fair price that covers their costs and allows them some profit. Part of this includes free and low cost downloads, incentives for physical purchase, downloads that are BOTH DRM FREE AND HIGH QUALITY. It is this kind of artist using that kind of distribution mechanism that will further cripple and perhaps bring to it's knees the tradition music industry. As bad as it would be for some, it would be a good thing for that to happen. Since I don't believe they will learn any other way then by having their business totally scrapped so that they have to start over again. Oh and do it right the second time around.