What is a rate sheet and how do I read it?

What is a rate sheet?

Rate sheets illustrate how a digital service provider (DSP) calculates the rate per unit for each DSP consumer offering (e.g., family tier, free ad-supported tier, premium tier).
The rate per unit is the mechanical royalty rate that is applied to each stream based on each DSP's subscription type and usage period.

PLEASE NOTE: Rate sheets are not unique to your account. They are provided as a tool to offer transparency regarding the royalty rates we use. 

Where can I find a rate sheet?

  1. Login to your Member account via The MLC Portal.
  2. From the left-hand menu, click Rate Sheets under the "Royalties" section.
  3. There are two filtering options: DSP and Usage Period.
    1. Select drop-down options under these filters to return the results you need.
  4. Once results populate, click Download under the "Rate Sheet" column.
  5. A new tab will open in your web browser with a PDF of the rate sheet for the selected DSP and usage period. 
    1. In the upper right corner, you can choose to download, print, or save this PDF to your desktop.
 

How do I read a rate sheet?

The top section of each rate sheet will show:
  • The usage period for the rate sheet
  • DSP name, address, and storefront (if applicable) 
  • Information about the service plan the rate sheet is referring to
The bottom section of each rate sheet outlines rate calculation steps for that service offering.

How can I use the rate sheets to estimate my royalty payment?

To get a better idea of what you can expect in terms of royalty payments, you can multiply the "Rate per Unit" for a specific DSP offering by the number of usages of your work on that specific platform.
Let's use the Apple Music Student plan rate sheet for October 2023 as an example.
If your song received 6,000 streams on Apple Music from listeners using the Student Plan in October 2023, you would calculate an estimate by multiplying the rate per unit for that plan ($0.0005879269) by 6,000, resulting in approximately $3.53. Keep in mind that you need to factor in your ownership share: if you own 50% of the work, your portion would be $1.76.

PLEASE NOTE: This is a simplified estimate based on one specific rate. It’s important to note that the royalty rates for interactive streaming and limited downloads are variable and change based on various factors, including the usage period and DSP revenue. This estimate is just a guideline.

Lastly, it’s essential to understand that The MLC does not set the rates found in the Rate Sheets; these rates are established by the Copyright Royalty Board (CRB) of the U.S. Copyright Office. Click here for a video to learn more about how the royalty rates are set.