Back in January 2018, the Copyright Royalty Board raised the royalties payable by streaming services to songwriters from 10% to 15%, over a 5 year period – meaning it covers 2018-2022. I can’t confirm why this has suddenly resurfaced as an issue today but it has, with force.
It’s been reported continuously that ‘Spotify is suing songwriters’ which, at first glance, is a very shocking claim and certainly puts shame on the streaming giant. However, Spotify alongside other streaming services (Google, Amazon, Pandora) aren’t suing songwriters, they are in fact appealing against the rates set by CRB. As Spotify have stated they believe that paying out more will impact the discounted subscription packages they can provide customers; they want to ensure the new rates cover “the right scope of publishing rights”. So in short, the streaming services are not suing songwriters, they are appealing the ruling to benefit everyone involved.
“The industry needs to continue evolving to ensure that the people who create the music we all love
Spotify’s statement
— artists and songwriters — can earn a living”
It’s completely understandable that streaming services are desperately resolving what they see as an issue because if they can’t offer the best deals, they will lose consumers and lose their ultimate attraction. But, where do Apple Music stand?
This is where it gets interesting, Apple Music have not appealed the CRB ruling, but they HAVE slammed Spotify for their appeal.
“It represents a real, meaningful and damaging step backwards for the Music Industry.”
Apple’s statement
Apple Music present themselves as completely artist friendly and artist focused, and they portray Spotify as being a money-focused corporation and they appear to be ultimately appalled by Spotify’s appeal. Remember the twist and turns of the Spotify vs Warner case? Well, this is no different.
Coincidentally (I’d say ironically but it’s not), Apple’s slamming of Spotify comes just weeks after Spotify filed a formal complaint against Apple’s ‘app tax’ in which they charge a 30% commision on in-app purchases; Spotify clearly finds this extortionate so are doing what they do best, complaining.
Anyway, the point remains; are Apple genuinely fighting for songwriters or are they fighting Spotify? This is a question that will attract many answers and many opinions, and unfortunately I cannot give you a definite answer but let’s hope the issue is resolved sooner rather than later!
Music Talks UK 