Determination of Rates and Terms for Preexisting Subscription Services and Satellite Digital Audio Radio Services, Docket No. 2011-1 CRB PSS/Satellite II
On December 14, 2012, the Copyright Royalty Judges issued their Initial Determination setting rates and terms for the digital performance of sound recordings and the making of ephemeral recordings by preexisting subscription services (PSS) and preexisting satellite digital audio radio services (SDARs) under the statutory licenses set forth in Sections 112 and 114 of the Copyright Act for January 1, 2013, through December 31, 2017.
Section 112 Rates: The Judges adopted the Parties' Stipulation regarding the rates and terms for the Section 112 rates, which will require a minimum fee advance payment of $100,000 per year, with royalties accruing during the year recoupable against the advance. The parties agreed that the value of the royalties allocated to the Section 112 license holders is 5% of the total royalty obligation, with the remaining 95% going to the Section 114 license holders.
Section 114 Rates: The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Subscription Services for 2013-2017 are 8% of Gross Revenues for 2013 and 8.5% for 2014 through 2017.
The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Satellite Digital Audio Radio Services for 2013-2017 are 9% of Gross Revenues for 2013, 9.5% for 2014, 10.0% for 2015, 10.5% for 2016 and 11.0% for 2017.
The parties have until December 19, 2012, to request redaction from the Initial Determination of any information governed by the Protective Order in effect in this proceeding. A public version of the full text of the Initial Determination will be made available upon redaction of protected information.
A few percent revenue improvement sent SIRI's stock soaring. I think they decided like 9% revenue with a 1/2 percent rise per year, from like %13?. Imagine what kind of jump we will see when they normalize this across the various delivery models. Our current #$%$ percent revenue to %9...wow.
How responsible would congress be if you vote to punish the people's most popular service that is free, by not passing the new legislation. This decision will definitely influence that vote.
How responsible is the music industry for such an extreme discrepancy in the rates it applies.
Bottom line I agree with your assessment, this is good for Pandora, and arguably better for P than the marginal effect it had for SIRI.
Monday should see some effects me thinks.
P is a BUY and strategic hold in my book.