PRS For Music, the entity representing some of the world's best music writers, composers and publishers, has published new new rates for music streaming services which will come into force in July 1st.
The new rates which will apply for 3 years, will see the per stream minimum charge reduced from 0.22p to 0.085p, representing a 61.4 percent reduction. The headline royalty rate however jumps from 8 to 10.5 percent.
Similar rate changes will also happen in the Premium Interactive Webcasting Services and Pure Webcasting Services. The change will have a profound impact on services such as Pandora, Last.fm, Youtube and Spotify.
Youtube and Pandora have essentially pulled out of UK; the former removed all premium muisic videos available to its UK users while Pandora stopped its UK stream more than a year ago after finding out that it was unsustainable to do business in the UK.
We7's CEO, Steve Purdham, told Musically that “On first look the announcement is very positive and could be a significant milestone in the future of British digital music distribution”
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Will the fall in charges bring back Youtube and Pandora? Youtube did told Music Ally tha tthey are still in discussions with the PRS over the license terms for Youtube, which may mean that they are NOT quite happy with the price they are asked to pay. Just as a reminder, Pete Waterman got £11 for the 40 million views Rick Astley's "Never Gonna Give you up" brought in. If the current PRS rates were to be applied (and respected by Google), Youtube would have to pay £34000.
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