Yockers, The actual royalty payments are fixed by the UK Copyright Tribunal - no room for negotiation. The problem is that the royalty format put forward in the UK by the MCPS/PRS doesn't take account of the Pandora model - it is a 'per song' format but is required each time a song is played. Pandora serves up individual streams, and plays the same song many times over, so each song played to each user essentially requires a separate licence.
The most detailed analysis I've seen is on one of the Media blogs - can't comment on the accuracy of his UK user base figures but the royalty payment figures are correct: Robert Andrews Wrote: > For background, the online license from the MCPS-PRS alone - which > collects royalties on music and lyrics for songwriters, publishers and > composers - asks interactive webcasters to pay either 6.5 percent of > company revenue, or, if its greater, a minimum total of microfees > (£0.085 per song streamed, £0.22 per premium customer per month). > > With 2007 revenues of $14 million (£7 million), Pandora would seemingly > have been asked to pay a 6.5 percent charge of around £455,000 to > MCPS-PRS. But, because the millions of songs it serves to user > simultaneously rack up royalty microfees totalling in excess of that, > its forced to pay significantly more. > > Pandora doesnt have concrete figures for its UK userbase, at best > guesstimating in the low hundreds of thousands. So, for a > back-of-the-envelope calculation if 200,000 users played 30 songs a > month (just one a day), at MCPS-PRS cost of £0.085 each, Pandora would > appear to owe £510,000 per month, or £6.1 million a year. http://www.paidcontent.co.uk/entry/419-more-on-pandora-doing-the-math-on-quitting-uk1/ That's a lot of £10... -- Siduhe ------------------------------------------------------------------------ Siduhe's Profile: http://forums.slimdevices.com/member.php?userid=723 View this thread: http://forums.slimdevices.com/showthread.php?t=41900
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