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Outcome - Outcome (Vinyl)

That methodology removed a semi-step in the process that had been there previously and served to set a rate cap at 80 cents per subscriber. That total was then compared to the pool based on master recording royalty payouts and the smaller of the two would be compared to the headline rate revenue percentage total. The larger of those was used as the all-in pool to determine publisher payouts.

Under that system, the total content cost was constrained by the number of paying subscribers -- an important step because now if labels are able to negotiate a higher rate, the publishing pool automatically increases too.

If the Board wanted to implement such an extreme change in the rate structure, it was duty bound to give a heads up to the parties. Circuit Court of Appeals also found that incorporating an 'uncapped Total Content Cost TCC ,' which allows the Court to take into account free market rates negotiated by record labels, was adopted without enough evidence regarding its impact," NMPA said in a statement.

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