Several streaming services have submitted separate submissions to the Copyright Royalty Board's three-person jury with proposed royalties for the period 2023-2027.
Streaming operators Spotify, Amazon and Pandora have reportedly proposed lower license fees for songwriters to the US Copyright Royalty Board (CRB).
Last week (Oct. 21), Billboard reported that several streaming services had separately submitted their proposed royalties to the CRB's three-judge panel for the years between 2023 and 2027 – a four-year period known as CRB Phonorecords IV.
Spotify, Amazon and Pandora have reportedly proposed royalties for Phonorecords IV of around 10.5 percent of sales. Spotify allegedly demands 10.5 percent, Amazon – for its music service Amazon Music – and Pandora 10.54 percent.
These proposed tariffs are lower than during the Phonorecords III period of 2018-2022, which started at 11.4 percent in 2018 and escalates to 15.1 percent annually in 2022. However, these tariffs are in pre-trial detention by the appeals court.
Consequence says Apple Music will follow the judge's lead in the ongoing appeal against Phonorecords III, while the Wall Street Journal reports that YouTube is not seeking lower prices for Phonorecords IV.
The Journal also reports that the National Music Publishers & # 39; Association urges streamers to pay the higher of each month: 20 percent of the revenue from their services, 40 percent of what is paid to record labels and other master recording copyrights, $ 1.50 per subscriber or $ 0.0015 each Stream.
"Not only are (streaming services) proposing to reset rates and terms to wipe out all profits for the past 15 years, they are actually proposing a structure that is worse than ever in the history of interactive streaming," said NMPA CEO David Israelite told Music Business Worldwide last week.
"It's disappointing, but not surprising, considering how they have treated songwriters over the years, including their ongoing assault on the 2018 odds win that they still refer to four years later."
The Digital Music Association, which represents the streaming companies, issued a statement on the tariff process highlighting the benefits of "long-term industry growth," including "billions of dollars invested in catalogs" and "new tools and features to help make it happen." to bring more ”. Music for more fans than ever before ”.
"How do we make the modern music economy usable for everyone?" Said DiMA CEO Garrett Levin. "That should be our focus – maintaining long-term industry growth and making sure it benefits as many people as possible."
The US Copyright Royalty Board's fee-setting process is ongoing and further developments are expected this week.
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