Pre-existing Subscription Service
1Eligible Services
This alternative rate structure exists under the original statute, and is intended to include subscription-based digital audio services which transmit audio recordings via cable networks, and who completed their first transmission on or before July 30, 1998 (37 CFR § 382 subpart B).
Currently, the only service meeting these terms are Music Choice and Muzak, LLC. Other services are not permitted to opt in to these terms.
2Terms
Services covered by these terms will pay royalties to SoundExchange on a percentage of revenue basis, and provide a $100,000 minimum fee.
Services will be required to supply regular census reporting in accordance with regulations.
3Rates
Services covered by these terms will pay royalties to SoundExchange on a percentage of revenue basis, and provide a $100,000 minimum fee.
4Reporting and Recordkeeping Requirements
Services governed by these terms must provide reports of use in accordance with regulations, including census reporting (actual recordings played and total listenership) within 45 days of the end of the relevant month. These requirements enable SoundExchange to most accurately process royalty payments to artists and copyright holders.
5Opting In
Currently, the only service meeting these terms are Music Choice and Muzak, LLC. Other services are not permitted to opt in to these terms.
6Compliance
Services governed by these terms must provide all minimum fees, monthly statements of account and payments, and reports of use to SoundExchange as required by law.