Streaming Services Try To Lower Royalty Rates For Songwriters, Publishers To Previous Lows

Spotify Taking The Offensive

SPOTIFY, AMAZON and PANDORA are proposing to the COPYRIGHT ROYALTY BOARD the lowest rates for publishers and songwriters for the period spanning 2023-2027 since 2018.

The CRB posted the rate proposals for the term, also known as PHONORECORDS IV,  yesterday, recommending lower rates, mathematically speaking, than any of the yearly figures set by the CRB PHONORECORDS III determination that covers 2018–2022. That rate is now under an APPEALS COURT remand and it is unsure whether it will stand. 

The three streaming giants are looking at the PHONORECORDS I and II rate determinations from 2008-2012 and 2013-2017, respectively. using those rates as guidelines in their new proposals. APPLE MUSIC is essentially proposing whatever rates the CRB judges decide in the remand process for PHONORECORDS III,

The NATIONAL MUSIC PUBLISHERS ASSOCIATION has already gone on record as being opposed to the proposal. 

The DIGITAL MEDIA ASSOCIATION (DiMA) CEO GARRETT LEVIN responded, “I believe the answer lies not with any rush to judgment or allusions to war, but in truly grappling with this cognitive dissonance -- ever-growing revenues for rightsholders, billions of dollars invested into catalogs, and new tools and features that help bring more music to more fans than ever before in a highly competitive landscape, alongside genuine frustrations by creators.

"How do we make modern music economics work for everyone? That should be our focus -- preserving long-term industry growth and ensuring that it benefits as many people as possible,” LEVIN added.

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