A panel of federal judges ordered free internet radio services like Pandora to raise their royalty rates in a decision set to take effect next year, The New York Times reports. The decision will benefit artists and record labels.

In their decision, the Copyright Royalty Board ruled that webcasters will have to pay record companies 17 cents — up from 14 cents — for every 100 times a song is streamed by listeners who don't pay a subscription fee. Plays by subscribers, however, will now be subject to a rate of 22 cents per 100, down from 25 cents.

The new rates are expected to bring in millions for record companies and artists, though SoundExchange — the non-profit licensing agency representing the labels — had hoped to secure a rate of 25 cents per 100 plays by non-subscribers.

Last year, Pandora paid over $400 million in royalties, which accounted for 44 percent of its revenue. Still the company's CEO Brian P. McAndrews called the judges' decision "a balanced rate that we can work with and grow from."

http://www.rollingstone.com/music/news/performance-royalty-rates-increase-for-online-radio-20151217