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By BH in General
Dear Jeff,

PRONETLicensing Affiliate

You are receiving this E-mail because we want to provide info on Music Rates For Affiliates in 2016

We are still trying to see what we will have available for you in 2016. We pride ourselves on a ‘one-stop-shop’ for music royalties. That is why we provided in 2015 BMI, ASCAP, SOCAN, SESAC, and SoundExchange service to you.
Timeline for Jan 2016 rates: 

We started the negotiations with all the PROs but at least one ASCAP has not provided what we think is fair to you, so no agreement is in place for them yet for 2016, but we have asked them to reply ASAP.  Almost all the PROs are on holiday leave until Jan 4, 2016, and there is not much we can do to discuss this with them until then for ASCAP.  So, you again will have to stop playing ‘All’ ASCAP music.  You are not be covered for ASCAP songs, and as it is today will not be for Jan 2016 until we get more from them about their rate, and notify you.

BMI has songs and many artist will put their songs with BMI and ASCAP, but usually it has been one PRO or the other not both, but in the last couple of years, many artists have joined both PROs, so when their songs are played royalties are paid, so the song you are playing might be covered by BMI, but again it is usually the CD, album cover that indicates the song, and if the artist has the song at both places it would be covered, but the recording media is what I suggest you use as the determinant for which PRO the song belongs to.

Your existing rate in 2016: 

What you pay now monthly will remain as we see it.  If you pay $23.50 it will be the same, but extras will be added to accommodate new rate changes, especially add-ons for ASCAP  and as below SoundExchange (what they provide as new rates to us gets invoiced to you in Jan 2016).

Rates SoundExchange 2016:

As you know  the SoundExchange rate that makes it legal to play your songs on the Internet is as we know it now and in our E-mails in the last week will be $500/yr, but must be paid in full and  directly invoiced to you. This is how I think we should do this, and allow you to keep your station is for us to send a separate invoice to you for SoundExchange.  You will have to pay that amount, which will cover you for a year, and is nonrefundable, because that is how SoundExchange provides it to us.

PRONETLicensing will need to accept your payment for SoundExchange through a one-time invoice payable through PayPal by 12-20-2015.    We will pay it to SoundExchange.  But, they required this one-time annual $500, which is about $50/month extra you’re paying for your station, but the problem is that SoundExchange also requires your station to pay performance fees.

This means that if you have 50 listeners tuned-in hearing a single song playing that will be 50 performances, and has a rate of $.0017×50 per performance for that song, but you might be playing 1000 different songs in a monthx50 listeners tuned in each time=50,000 performancesx$.0017 =$85/month additional in performance fees, just for SoundExchange, so now if you are on the $23.50 plan it will be that plus $85.00=$108.50/month.

If we add ASCAP (see below) it will be whatever their new Jan 2016 rate is invoiced on to you.  If you have to go direct with ASCAP, it will require for a low plan with them approx. $240/yr one-time payment, but you’ll have to do your own reports, and will probably be on a sessions basis instead of the ATH usage and/or for larger plans you might not want to do that, so that is why it is good to see if we can negotiate a better rate.

PayPal charges us a percentage% when you make a payment to us, so when you pay us that percentage is deducted.  We do not want to lose any of you as a customers, so we proposal that for all affiliates who pay the $500, we will not add that cost to your invoice.  PRONETLicensing will pay it.  Let’s say PayPal deducted $5.00 when you pay the invoice, we will be short $5.00, but we want all affiliates to know we will pay this one-time extra $5.00 without adding it on to your $500 invoice, so you will remain with us.

ASCAP 2016 rates:
We hope we can do ASCAP for you in some way, not sure how yet as above, and we are waiting for their reply sent to them 12-22-2015 requesting a counter-offer, again now waiting ourselves until Jan 4,  2016 because of the holidays.We hope we will not lose you as an affiliate by going direct, and hope we can negotiate a better rate.

BMI  song search: all searches you will need the name of the artist and the song, if the song is there you will use it or not depending on if it is or is not ASCAP.Reducing song plays:
The only thing you can do to keep your station is to know you will have to pay in this way.  You can decrease listeners until you see how your performance are adding up.  Or if you have enough revenue pay as above and keep your station going as usual.So for Jan 1, 2016 this is what we will do: Send invoices with the current rate, add a one-time invoice for SoundExchange $500/yr, calculate your performance fees for you beginning Jan 1, 2016, and you will pay accordingly.  This will help you keep your station up in the meantime, while we all including yourself try things out for calculating the new per performance fees.Until told you do not use any ASCAP music on your station.  We do not want to have to make refunds of the SoundExchange fees, but again they are non-refundable, and we will refund it on a case-by-case basis, and it would be due by 01-20-2016, which will be on the invoice.

Hope this helps. We will update you ASAP as we get more.  We will work with each PRONETLicensing affiliate for your needs or questions, when you have them.  Remember the idea is to not close your station, but to maybe decrease listeners and hours played until we all can get through this, and know what actual monthly payments to expect.
If you have requested cancellation please be patient and do not panic or close your station in hastily.  We think we can all get through this, and as of today we are still waiting for a reply from SoundExchange (but SoundExchange will probably not change) and ASCAP will have its own fee added, but by how much we expect to be by your usage.  Again, don’t panic or make a hasty decision to close your station.  Try to identify songs you use and put them in rotation accordingly.

Sincerely yours,

Signed: Kathy Allen – President
K.R.’s Processing Inc./
PO Box 2488 – Washington, DC 20013-2488
[202) 436-9763]
We will update you when we have more.  Please put in a support ticket using your clientarea, if you have a specific question.  Thank you for your patience.
Thank you for being an affiliate with us PRONETLicensing and enjoy your station.
Kathy Allen
KRS Processing Inc/PRONETLicensing

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