UPDATE: The US Copyright Royalty Board (CRB) has rejected arguments from Spotify and other music broadcasters and will dramatically increase payments to songwriters and publishers for streams between 2018 and 2022.
In what is the largest increase in CRB history, rates will rise from 10.5% to 15.1% over five years.
“The [CRB] reaffirmed the 15.1% increase in overall rate that we have earned for four long years [ago]confirming that songwriters need and deserve a significant increase in digital streaming services that profit from their work,” said Israelite DavidCEO and President of the National Music Publishers Association (NMPA) in a statement after the ruling.
Spotify, Google/YouTube, Pandora and Amazon Music represented by the Digital Media Association (DiMA) – but not DiMA member Apple Music – had fought off the increase.
“The decision reflects a significant increase in royalties that will be paid to publishers,” said the president and CEO of the Digital Media Association (DiMA). Garrett Levin. “Streaming services are committed to working with MLC and music publishing companies to facilitate accurate distribution of royalties.”
Fixing of tariffs for 2023 – 2027
Next comes what is sure to be a contentious fight to set tariffs from 2023 to 2027.
“This procedure is also a reminder that rate settings do not – and cannot – take place in a vacuum,” continued Wine speaking for heavy streamers. “Today’s decision comes as the three major label groups – which operate the world’s three largest music publishers – continue to carve out the lion’s share of industry profits while recording steady growth. double-digit revenue from streaming.”
Wine continued: “Looking forward, streaming services believe it’s time for all stakeholders – labels, publishers, writers, artists and services – to engage in in-depth discussions to determine the right sharing balance. royalties in the future.”
On this point, music publishers at least partially agree. “We will fight to increase the TCC, or percentage of label revenue,” the NMPA said. Israelite“which amounts to an insurance policy for songwriters, in the next CRB and will also fight for stricter conditions regarding bundles.”
Bruce Houghton is founder and publisher of Hypebot and MusicThinkTank and is senior adviser to Bandsintown which acquired both publications in 2019. He is the founder and president of Skyline Artists Agency and a professor at Berklee College Of Music.