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Crib sheet: 07.10.06.
So, what's this deal all about then?
Well, basically, the publishers (represented by MCPS-PRS) have agreed with the labels (represented by the BPI) to a new online royalty rate of 8% of gross revenue less VAT.
But isn't 8% what the labels have wanted all along?
Yes.
So the labels have won...
Well, not precisely. It is a little more complicated than that. The online rate compares to the current physical rate of 8.5% of dealer price. When this physical rate was set by the Copyright Tribunal in 1991, it was considered to be equivalent to 6.5% of retail price. But that 8.5% of dealer price is today considered by many to be worth more than 6.5% - over the years, dealer prices have remained the same, but retailers have discounted off them by offering reduced in-store prices, while labels have discounted by offering "buy-three-get-one-free" type deals.
Still, the labels wanted 8% and they have got it.
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