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LICENSE FEE CALCULATION

To assist you in completing an ASCAP Internet license agreement and calculating your license fee, try:

ASCAP RateCalc®

Both Non-Interactive 5.0 and Interactive 2.0 offer licensees a choice of three License Fee Report Forms, also known as "Rate Schedules." All Rate Schedules utilize two basic measurements in their respective calculations: 1) Site/Service Revenue; and 2) Site/Service Sessions (activity).

Rate Schedule "A" contains the broadest of the three types of fee calculations and is generally well suited for music-intensive sites/services as well as sites/services that attract small to medium-sized audiences. Rate Schedule A's rates are applied to gross (qualifying) Revenue and Sessions.

Rate Schedule "B" contains rates that are applied to more narrowly defined Revenue and Sessions and is generally well suited for sites/services that generate considerable non-music Revenue or Sessions. Rate Schedule B's rates are slightly higher than Rate Schedule A's and it requires submission of more sophisticated data.

Rate Schedule "C" contains rates that are applied to even more narrowly defined Revenue and Session and is generally well suited for sites/services that have limited (ASCAP) music use. Rate Schedule C's rates are the highest amongst the three forms. To qualify for and use this form licensees must have the ability to track and submit detailed music use data.

For many sites and services, Rate Schedule A - requiring the least amount of tracking and reporting - results in an acceptable fee.

When you first become licensed by ASCAP and complete your Initial License Fee Report, you must provide us with "good faith estimates" of Revenue and Sessions (and other pertinent data) for the period starting with on the effective date of your license and ending on December 31 of the same calendar year. Subsequently, you will be asked to submit a second report using the same or a different Rate Schedule (your choice), indicating the actual Revenue and Sessions that your site/service generated during the initial period. We will then make any appropriate adjustment to your fee for the period and use the new data to estimate your fee for the succeeding twelve months.

ASCAP's Minimum Annual Fees are:

    Non-Interactive 5.0: $288
    Interactive 2.0: $340

Minimum Annual Fees are not prorated to reflect portions of a calendar year.



LICENSE FEE CALCULATION FAQs

How do I know which Rate Schedule is best for my site or service?
Please see "LICENSE FEE CALCULATION" above for an introduction to calculating ASCAP license fees and selecting the Rate Schedule that is best for you. Provided you have the necessary data, you may use ASCAP RateCalc® to calculate your fee using each of the three Rate Schedules available for each license agreement.

My site is new and I do not know how much revenue and/or sessions it will generate for the initial reporting period. Does this mean I should submit a blank Rate Schedule or insert "0" for unknown data?
Blank Rate Schedules or those with "0" on inappropriate lines are deemed incomplete and should not be submitted. Please generate a good faith estimate for each applicable section. "$0" may be used when no Site/Service Revenue is anticipated.

What income qualifies as "Revenue"?
All income generated by your site or service except that which is attributable to the sale of physical goods is defined as "Revenue" by Non-Interactive 5.0 and Interactive 2.0. Common sources of Site/Service Revenue include income from advertising and/or sponsorships, and subscription fees.

What if my site/service has no subscription fees, advertising or any income?
If your site/service does not generate any income, you may enter "$0" on applicable lines of the Rate Schedule.

Are "Internet Site/Service Sessions" the equivalent of "hits"?
Not usually. Hits are generally considered "clicks" on individual sections or pages within a site or service. Internet Site/Service Sessions, alternatively, are more analogous to "visits" in one-hour increments. For example, if a user visits your site/service and accesses 5 pages over the course of 30 minutes before departing, he/she has generated one Internet Site/Service Session. If the user returns to your site/service for a second visit in the same day, this time accessing 25 pages over the course of one and a half hours, he/she has generated two additional Internet Site/Service Sessions, for a total of three.

If a user listens to five different songs during a Session does that generate five "Music Sessions"?
No. Similar to the difference between hits and Internet Site/Service Sessions, if a user listens to anyone or more songs or portions of a song during any single Session, the Session is deemed to be a single "Music Session." In other words, a Session is a "Music Session" if any performance of music is transmitted during the Session.

What if I only intend to make one song available?
ASCAP does not grant licenses on a per-song basis. Instead, ASCAP offers blanket licenses that authorize the performance of any or all of the millions of copyrighted musical works in the ASCAP repertory. If you intend to make available one or a small number of songs and do not believe an ASCAP blanket license is best suited for you, you may contact each of the copyright owners (most typically the publisher) for each of the songs you would like to use to request a direct license. To help you identify copyright owners, ASCAP offers the ACE Title Search tool with which you may search for ASCAP song information.

When are license fee payments due?
Many licensees elect to submit their license fee payment at the time they enter into the agreement and with each subsequent Annual Licensee Fee Report submission. Licensees may also wait until they receive an invoice from ASCAP, which is accompanied by a return payment envelope.

What forms of payment do you accept?
Checks and money orders are our preferred method of payment. If you wish to make a payment by means of wire transfer or credit card, please contact the ASCAP New Media Licensing Department via e-mail at: Weblicense@ascap.com.

DO NOT include your credit card account number in your e-mail.

Click here for more information on the ASCAP Repertory

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