The Korea Music Copyright Association (hereinafter referred to as KOMCA) has raised its voice against the unreasonable music usage fees received from broadcasters.
KOMCA stated, "Music, which is an important element used in all programs, including music entertainment that accounts for most of the broadcasters' revenue structure, has seen its fee rates stagnate for 10 years," urging for system improvements.
According to KOMCA, the copyright fees paid by broadcasters for music usage in South Korea are significantly lower compared to major countries overseas. The actual broadcasting usage fee rate in Korea is around 0.6%, showing a large gap compared to France (5%), Canada (1.9%), and Japan (1.5%).
In terms of the total amount collected for broadcasting usage fees, it accounts for only 15% of the total music copyright fees collected, which is also a small percentage compared to the United States (ASCAP) at 57%, France (SACEM) at 35%, and Japan (JASRAC) at 26%.
According to KOMCA's estimates, the copyright fee paid for using a single music track on broadcast is only 0.0007 won. If the same track is used on video-on-demand (VOD) services, it is charged at 1.4 won, and when used on OTT platforms, it is paid at 0.051 won per use. This means that music used in broadcasting is 73 times cheaper than VOD and 2000 times cheaper than streaming services.
Nevertheless, broadcasters have been repeating their claim that a rate increase is impossible for over a decade. Whenever negotiating music usage fee contracts with KOMCA, broadcasters have maintained the position that "the growth potential of the broadcasting industry has slowed, making a rate increase difficult." However, even during the steady growth of the broadcasting industry in the 2000s and 2010s, broadcasters refused to increase rates, citing reasons such as changes in industry structure. Ultimately, there are criticisms that broadcasters delaying rate adjustments under the pretext of revenue decline is merely an excuse.
KOMCA also argues that the method of calculating fees is structured unfavorably for creators. While many countries calculate fees based on net revenue after excluding certain costs from the total revenue of broadcasters, Korea maintains a 'positive system' that limits the revenue subject to calculation to specific items. As a result, the diverse revenue structures of broadcasters are not reflected, leading to a decrease in the rightful compensation that should go to music creators.
Moreover, the long-standing issue of broadcasters failing to submit cue sheets, which contain information about the music used, remains unresolved. Cue sheets are essential materials for settling music copyright fees, but many broadcasters are not submitting them properly.
Despite this situation, the Fair Trade Commission has imposed a fine of 340 million won on KOMCA, claiming that it excessively charged and collected copyright fees from broadcasters. In response, KOMCA has refuted this based on comparisons of rates with major countries and the non-submission of cue sheets by broadcasters, and is currently pursuing administrative litigation against the Fair Trade Commission's decision.
A KOMCA official stated, "Although music is an important element that enhances the immersion and maximizes the emotions of broadcast content, the domestic broadcasting usage fee structure does not fairly evaluate the value of music," adding, "As the content industry develops, an environment must be created where music creators can receive fair compensation."
[Ji Seung-hoon, Star Today Reporter]
