Million Media

See Things Differently

PRS Announce New Minimum Streaming Rates, But Do They Add Up?

PRS For Music have announced an increase in their royalty rate from 8% to 10.5% but a decrease in the minimum ‘per-stream’ rate from 0.22p to 0.085p

Put another way, this equates to £0.85 (eighty five) pence per thousand plays.

Assuming the record labels (the owners of the Master Recording rights) ask for a similar amount this would equate to £1.60 per thousand streams for any webcaster or online radio / interactive service.

The problem is that advertising rates do not cover this, in particular, Google who operate an auction style bidding system.

If we pay for a campaign on Google (YouTube) or Facebook we expect to pay a CPM of between 20p and £1, well below the current rates announced.

Since MJD work for both sides it gives us a decent overview. Music obviously has a value and it’s difficult to say who is right or wrong – however, it strikes me the rates set by Google are the “market” rates, i.e. what advertisers are actually prepared to pay, as opposed to the rates set by PRS which are what they would like advertisers to pay.

The fact that YouTube and PRS are still at loggerheads would suggest the new rates are still not acceptable.


About Neil

Neil Cartwright founded Million Media in 2006 with the aim to help people understand digital marketing and use it to their advantage. The vision hasn't changed but the technology has.

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This entry was posted on May 26, 2009 by in artists, music.
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