A panel of copyright judges on Wednesday raised the amount Internet music streaming services like Pandora must pay to record labels next year and beyond.
The Internet radio giant hailed the ruling as “balanced” and its shares jumped, but artist and label group SoundExchange decried the decision, saying it “will erode the value of music.” SoundExchange, which distributes payments to artists and labels, said it will closely review the decision and consider its options.
The Copyright Royalty Board’s decision sets rates for non-interactive services like Pandora, iHeart Radio and Sirius XM for the next five years. The rates set by the board act as a minimum for services that use them as an alternative to direct deals with labels.
The board raised the rate for free streaming services to 17 cents per hundred plays, up from 14 cents. For paid subscription services, the rate fell to 22 cents from 25 cents. Both rates will rise with inflation through 2020.
Pandora CEO Brian McAndrews said in a statement the increase was one his company “can work with and grow from.” Pandora, which is based in Oakland, Calif., says its blended rate will rise 15 percent.