Digital service providers Spotify, Apple Music, Google and Pandora have submitted documents outlining what they think songwriter royalty rates should be for the years 2023 to 2027.
Copyright law states that every five years, copyright royalty judges oversee discussions to determine which streaming services like Spotify and Apple Music pay as mechanical royalty rates to songwriters. and publishers. These platforms are notorious for their incredibly low payout rates and “exploitative practices” when it comes to paying music creators.
The National Music Publishers Association (NMPA) has fought for higher mechanical royalty rates for music publishers and songwriters. The organization’s president and CEO, David Israelite, said these proposed tariffs have “crucial implications for songwriters and music publishers.”
He added that songwriters and publishers should take note of these filings, as it shows how little these streaming giants care about the artists and songwriters who keep their platforms afloat.
“Amazon, Spotify, Apple, Pandora and Google offered the lowest royalty rates in history,” said one Israelite. The music industry around the world. “Not only are they proposing to roll back rates and terms to erase all of the gains of the past 15 years, but they’re actually proposing a worse structure than at any time in the history of interactive streaming.”
The NMPA proposed a broader and more favorable formula for songwriters and publishers:
- 20% percentage of turnover; Where
- 40% of what record companies and artists receive; Where
- $1.50 per subscriber; Where
- $0.0015 per game
In January 2018, the songwriters urged the United States Congress to pass the Music Modernization Act, which President Trump signed into law in October 2018.
It was a significant step forward into the digital age of music, ensuring songwriters received royalties on songs before 1972. It also designated funds for music producers and updated licenses for royalty rules and streaming services so that they deliver payments more efficiently.
“[Music creators] have been treated very unfairly,” Trump said after signing the Music Modernization Act. “They will no longer be treated unfairly.”
Sadly, however, songwriters and musicians have continued to fight with big corporate streaming platforms for equal pay.
The Music Modernization Act also designed the Mechanical Licensing Collective (MLC) to collect and distribute royalty payments. “As of January 1, 2021, songwriters and music publishers must register with the MLC using its online claims portal to receive royalty payments under the new General License,” it read. on the Copyright.gov website.
Songwriters and music publishers are in an ongoing legal battle with the Copyright Royalty Board (CRB). In January 2018, the CRB decided that mechanical uses and streaming royalties would increase by 44% between 2018 and 2022.
Songwriters’ earnings rose from 10.5% to 15.1% between 2018 and 2022 and marked the largest rate increase ever approved by the CRB.
The CRB then ratified its decision after the publication of the final tariffs and conditions for songwriters. Spotify, Google, Amazon and Pandora opposed the CRB’s decision in March 2019. The music advocacy group Songwriters of North America (SONA), co-founded by Kay Hanley, Michelle Lewis and powerful entertainment lawyer Dina LaPolt, condemned their decision.
“There are many fronts to the war for higher and fairer tariffs, but we hope the entire music industry will come together to support our efforts in these crucial cases as they will dictate the future. of the streaming economy,” Israelite said. The music industry around the world.