Record Labels Flip Out After Indian Copyright Board Massively Lowers Radio Royalties
from the get-ready-for-the-anti-India-spin dept
Get ready to hear all sorts of stories from record labels about how India is “anti-music” and a problem. That’s because the Copyright Board in India just drastically changed the royalty structure for playing music on FM radios. Rather than a set hourly rate of approximately $25.60 – $35.50/hour (1200 to 1600 rupees), it’s now saying that stations should just pay 2% of their net advertising. That turns out to be a massive change — perhaps a drop of about 90% to the record labels, since the current hourly rates represent about 18% of net advertising revenue. Of course, as the article points out, the 18% rate was much higher than most of the rest of the world and crippling to radio stations. But, in the world we live in, the record labels will never accept the idea that they don’t always deserve greater and greater rights to money.