Culture Ministry: "PPs Have Standard for Music Copyright Fees... Same Formula as Terrestrial Broadcasters"

Exterior view of the Ministry of Culture, Sports and Tourism building. Provided by the Ministry of Culture, Sports and Tourism

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The Ministry of Culture, Sports and Tourism announced on March 13 that, contrary to some reports claiming that Program Providers (PP) lack a standard for calculating music copyright fees, the same basic formula as terrestrial broadcasters is being applied.

According to the ministry, both PPs and terrestrial broadcasters use the same basic formula for calculating music copyright fees: 'sales revenue × rate × management ratio.' However, there are differences in how the 'management ratio,' which is derived by measuring actual music usage, is calculated.

Terrestrial broadcasters determine the management ratio by measuring actual usage through the Broadcast Music Monitoring System (BROMIS), which includes participation from four music copyright organizations and 35 broadcasters. In contrast, PPs do not participate in BROMIS and do not submit music usage reports (cue sheets), so the management ratio set by the music copyright organizations is applied to them.

BROMIS launched its operating committee in July 2016 and completed system development in March 2022. In September 2024, the management ratio was calculated for the first time based on this system. Since the system is operated with the budgets of participating organizations and broadcasters, any third party wishing to use it must share the costs.

According to the regulations for collecting music copyright fees, the music usage fee rates per channel are 4% for music channels, 2.3% for music and variety channels, and 1.1% for entertainment channels. For terrestrial broadcasters such as KBS, MBC, and SBS, a rate of 1.2% is applied.

The ministry stated, "We have discussed cost-sharing measures for PPs with relevant associations and organizations and have proposed alternatives," adding, "We also plan to continue mediating between the BROMIS Operating Committee and PPs going forward."

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