The Korea Music Copyright Association (KOMCA) has expressed its position on the unreasonable music usage fees received from broadcasters.
On the morning of the 20th, KOMCA urged for system improvements, stating that while music is used as an important element in all programs, including music entertainment, which makes up most of the broadcasters' revenue structure, the royalty rate for usage has remained stagnant for ten years.
According to the association, the actual broadcast royalty rate in Korea is 0.6%. The copyright fees paid by broadcasters for using music are significantly lower compared to major overseas countries. When compared internationally, the rates are France (5%), Canada (1.9%), and Japan (1.5%).
The royalties collected from broadcast usage also account for only 15% of the total music copyright fees collected. This percentage is lower than that of the U.S. (ASCAP) at 57%, France (SACEM) at 35%, and Japan (JASRAC) at 26%.
KOMCA estimates that the current copyright fee for using a single piece of music once in a broadcast is a mere 0.0007 KRW. When the same piece is used in a Video On Demand (VOD) service, the fee is 1.4 KRW.
For usage on OTT platforms, 0.051 KRW per time is paid. The music used in broadcasts is therefore 73 times cheaper than VOD and 2000 times cheaper than streaming services.
KOMCA stated that "broadcasters have been repeating the claim that increasing the rate is impossible for over a decade" and maintained that "whenever negotiating music usage fee contracts, broadcasters have adhered to the stance that rate increases are difficult due to the stagnation of the broadcast industry growth."
They continued, "Even during the 2000s to 2010s when the broadcasting industry was consistently growing, rate increases were refused," adding that "ultimately, broadcasters delaying rate adjustments by citing revenue declines is merely an excuse."
The method of calculating usage fees is also considered to be disadvantageous to creators. Overseas, it is common to calculate usage fees based on net revenue, excluding certain expenses from the total revenue of broadcasters.
KOMCA pointed out that "Korea restricts the calculation to only specific items as the base sales amount," and criticized that "the diverse revenue structure of broadcasters is not reflected, and the rightful rewards due to creators are decreasing."
The non-submission of cue sheets by broadcasters remains an issue. "The cue sheet, which contains information on the music used, is essential for the settlement of music copyright fees. Many broadcasters are not properly submitting this," it stated.
The unreasonable situation persists. The Fair Trade Commission imposed a fine of 340 million KRW on KOMCA, claiming that it excessively charged and collected copyright fees from broadcasters.
In response, KOMCA refuted the claims, citing comparisons with rates in major countries and the non-submission of cue sheets by broadcasters. The association is currently proceeding with an administrative lawsuit against the Fair Trade Commission's decision.
Finally, KOMCA concluded by stating, "The domestic broadcast usage fee structure does not properly value music," emphasizing "the need to establish an environment where music creators can receive fair compensation as the content industry develops."
<Photo provided by KOMCA>
