Several of the music industry’s largest trade groups on Wednesday reached an agreement on royalty rates for licensing music to online music services like iTunes Match.
Ever since the dawn of digital music, the industry has not only had to grapple with how to control the illegal spread of its content – curbing piracy — but also how to properly charge for its distribution on legal services. It is of growing importance now that more than 50 percent of the music market's value comes from digital sales.
That is what this agreement tries to resolve. The Recording Industry Association of America (RIAA), National Music Publishers Association (NMPA) and Digital Media Association (DiMA) will submit a proposal to the Copyright Royalty Board (CRB) suggesting the establishment of royalties for five different kinds of new digital music business models.