PRS collection society slashes the cost to service providers.
The UK's Performing Right Society (PRS) has confirmed its headline royalty rate for streamed music will increase from eight per cent to 10.5 per cent of revenue, in exchange for the per stream minimum being reduced from 0.22p to 0.085p.
The new rate will come into effect on July 1st. Rates for download services and services funded by subscription will remain the same.
The new rate's main beneficiaries will be the big online services like Spotify, Pandora and YouTube, though obviously there are implications for mobile-centric streaming services too.
The PRS decided on the new rate, which has been widely welcomed, following a seven month consultation period with key stakeholders, major & independent music publishers and the wider industry.
Andrew Shaw, Managing Director of Broadcast and Online at PRS for Music, said: "We believe these new streaming rates will stimulate growth in the digital music market and will benefit our licensees and our members."
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Learn more about the implications of today's news from the PRS at ME's very own Mobile Music Now conference, which takes place on July 9th. Click here for more details.
