CRB makes landmark rate decision for Pandora and other streaming services

the non-subscription per-stream rate set by the CRB will be $0.0017, up from $0.0014.

Subscription tier per-stream rates are set to $0.0022 down from $0.0023, although in 2015, Pandora pays a rate of $0.0025 under the negotiated Pureplay Agreement with SoundExchange.

The rate increase applies only to 2016 and will be adjusted based on the consumer price index.

*Pandora’s projected blended rate for 2016.

**From 2006-2015, Pandora paid rates and terms under a [Pureplay Agreement](http://www.soundexchange.com/service-provider/commercial-webcaster/pureplay-webcaster/ "target="_blank) negotiated with SoundExchange. In 2015, the “Web III” or statutory rate was $0.0023.

Pandora stock rose nearly 20% in after hours trading.

Below is the update taken directly from the [Copyright Royalty Board](http://www.loc.gov/crb/ "target="_blank).

The Copyright Royalty Judges today issued their written determination of royalty rates and terms to apply from January 1, 2016, through December 31, 2020, to digital performance of sound recordings over the Internet by nonexempt, noninteractive transmission services (webcasters) and to the making of ephemeral recordings to facilitate those performances. The written determination is currently being reviewed by the parties to the proceeding to determine which portions, if any, contain confidential information that must be redacted from the version that will be released to the public.

The rate for commercial subscription services in 2016 is $0.0022 per-performance. The rate for commercial nonsubscription services in 2016 is $0.0017 per-performance. The rates for the period 2017 through 2020 for both subscription and nonsubscription services shall be adjusted to reflect the increases or decreases, if any, in the general price level, as measured by the Consumer Price Index applicable to that rate year, as set forth in the regulations adopted by the Judges’ determination.

The rates for noncommercial webcasters are: $500 annually for each station or channel for all webcast transmissions totaling not more than 159,140 Aggregate Tuning Hours (ATH) in a month, for each year in the rate term. In addition, if, in any month, a noncommercial webcaster makes total transmissions in excess of 159,140 ATH on any individual channel or station, the noncommercial webcaster shall pay per-performance royalty fees for the transmissions it makes on that channel or station in excess of 159,140 ATH at the rate of $0.0017 per-performance. The rates for transmissions over 159,140 ATH per month for the period 2017 through 2020 shall be adjusted to reflect the increases or decreases, if any, in the general price level, as measured by the Consumer Price Index applicable to that rate year, as set forth in the regulations adopted by this determination.

The Judges also determined details relating to the rates for each category of webcasting service, such as minimum fee and administrative terms. The regulatory language codifying the terms of the Judges’ determination is available on the Copyright Royalty Board website at [www.loc.gov/crb/web-iv/web-iv-terms.pdf.](http://www.loc.gov/crb/web-iv/web-iv-terms.pdf "target="_blank)