RIAA, NMPA, DiMA Agree On New Digital Music Rates

Trade organizations representing music publishers and songwriters, major record labels, digital music services and cell phone companies today announced a joint agreement setting mechanical royalty rates that they say are designed to support new digital uses and business models.

The Recording Industry Association of America (RIAA), National Music Publishers' Association (NMPA) and Digital Media Association (DiMA) will file the joint agreement today for final approval by the U.S. Copyright Royalty Board. The deal, which covers 2013-2017, establishes a royalty rate category for 5 new business models and rolls forward, with limited changes, all existing rates and terms for CDs and downloads.

The five new categories:  

• Mixed service bundles (for example, a locker service, limited interactive service, downloads or ringtones combined with a non-music product such as a mobile phone, consumer electronics device or Internet service)
• Paid locker services (subscription-based locker providing on-demand streaming and downloads)
• Purchased content lockers (a free locker functionally provided to a purchaser of a permanent digital download, ringtone or CD where the music provider and locker have an agreement)
• “Limited offerings” (subscription-based service offering limited genres of music or specialized playlists)
• Music bundles (bundling music products such as CDs, ringtones and permanent digital downloads)

More details on the new rates as the become available.