Actually, there is this complex calculated statutory rate.
It's the lesser of $.15 per subscriber month vs.
10.5% of revenue and if pass thru license, 18% of service royalty expense for label, if not pass thru, 22% of service royalty expense for label, less PRO amounts.
see
http://harryfox.com/docs/HFARoyaltyRatePR10-2-08.pdfI've asked Harry Fox to explain it, show me a sample calculation. They don't even know.
Most smaller labels don't have direct deals with all the digital service providers. I've only worked with one indie that had some direct deals and therefore was privy to subscriber numbers by month.
I've asked aggregators like IODA what they plan to do to help labels make this calculation. I've asked Fontana.
No one understands this crap. No one is going to pay something they can't figure out.
If anyone here wants to take a crack at it, I'd really be indebted and appreciative.