US Copyright Royalty Board Boosts Songwriters’ Streaming Pay Nearly 50%

Variety reports: The Copyright Royalty Board has ruled to increase songwriter rates for interactive streaming by nearly 50% over the next five years, in a ruling issued early Saturday. Equally important, the CRB simplified and strengthened the manner in which songwriters are paid mechanical royalties, modifying terms in a way that offers a foothold in the free-market.

The ruling, in favor of the National Music Publishers’ Association and the Nashville Songwriters’ Association International, amounts to what NMPA president and CEO David Israelite calls “the biggest rate increase granted in CRB history,” with Amazon, Apple, Google, Pandora and Spotify compelled to pay more for the use of music. …

The new rate will be based on the greater of either 1) a percentage of revenue or 2) total content costs. Content costs are payments to labels, which are negotiated without legal constraints, so the deal effectively affords writers – who are largely shackled to statutory rules – some free-market frisson. Additionally, caps and limitations to which the writer rates had been subject are now eliminated. …

While the change will be insignificant to the bottom lines of behemoths Apple, Amazon and Google, the smaller Spotify and Pandora may feel the pinch. Interestingly, while Amazon, Google, Pandora and Spotify argued to maintain the status quo, Apple broke ranks, conceding that the current royalty rate structure was “too complex” and “economically unsound” and advocating for “a single per-play rate that is the same for all services.” That last did not come about, but the Cupertino tech firm signaled artistic sympathy that could play out in interesting ways going forward.

For the full story on Variety.com, click here.