Report: Apple Royalty Offer To CRB Puts Pressure On Spotify
July 18, 2016 at 11:14 AM (PT)
APPLE has filed what a new proposal with the US COPYRIGHT ROYALTY BOARD that ostensibly would simplify songwriting royalties in the U.S. The proposal: Starting in 2018, all on-demand streaming services should pay songwriters a statutory rate of 9.1 cents every 100 plays -- in other words, songwriters would receive $910 for every million plays their songs get.
"This formula would replace the long passages of federal rules for streaming rates, which often leave musicians bewildered about just how the money flows in streaming music," the NEW YORK TIMES reports, also adding, "The proposal would significantly raise the rates that SPOTIFY pays, and the filing includes lines that are clearly directed at SPOTIFY and its so-called freemium model."
APPLE’s filing was part of a proceeding by the CRB to set statutory rates for downloads and interactive streaming services from 2018 to 2022. SPOTIFY, GOOGLE, PANDORA, AMAZON and the RIAA were expected to file their proposals by FRIDAY, but the panel has not yet made the filings public.