• Cloakroom Confidential: Free Market in Music Streaming

    Good news was received recently for those who are following the work of the Copyright Royalty Board (CRB). An expected decision on the rate that music streaming companies will be charged for playing music on services like Pandora and iHeartRadio. The good news is that the CRB is allowing evidence that will help them to study free market negotiated rates for the purposes of setting a fair price for internet streamed songs.

    Investor’s Business Daily reports “The CRB will determine the rates and terms for webcasting under a statutory license for the period stretching from Jan. 1, 2016, to Dec. 31, 2020. The trial portion of the proceedings ended on July 21 and the CRB is expected to issue a ruling no later than Dec. 16.”

    The music industry wants to hike the rates and have urged the CRB to ignore market driven prices. These music industry professionals hide behind the artists when they are the ones who are taking away the fruits of music makers and making massive profits because they have perfected the art of crafting a contract stripping artists of rights to their own music. Internet streaming companies urged the CRB judges to look at negotiated prices and the judges said yes.

    Furthermore, if the rates are set too high and drive companies like Pandora out of business, the artists will be hurt again. Dave Grimaldi of Pandora argued that they have paid out about “$1.5 billion in royalties to date.” A high rate will end this stream of money for the artists.

    Root for the free market to win in this battle between a technology that millions enjoy and big music companies who have not been historically responsive to the consumer.

    Cloakroom Confidential

    Cloakroom Confidential was a longtime Capitol Hill staffer and insider who has contacts in the House and Senate at the highest levels.

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