Online streaming services have surely drifted entertainment industry from a closed circuit stage into a world wide open web. The music lovers can enjoy music at their comfort with minimum or sometimes at no charge. But for songwriters, artists, and music composer, these streaming services were not so smooth and the reason is them (streaming services) opposing the increase in recent royalty rate by CRB. The recent announcement by Copyright Royalty Board (CRB) to raise the royalty rates for songwriters and music composers were opposed by streaming services like Spotify, Amazon, Google, and Pandora due to the fee structure.
The appeal by streaming giants drew howls of protest from publishers and songwriters. National Music Publishers’ Association (NMPA) president David Israelite envisaged the appeals to ‘declaring war on songwriters,’ and later accused Spotify of ‘suing songwriters’ to lower the rates. To which Spotify tried to justify it saying they are not suing songwriters but they are against the complex fee structure proposed by CRB.
The CRB’s 15% rate doesn’t account for all these rights. For example, it doesn’t consider the cost of rights for videos and lyrics. Putting it straight, Spotify is less supportive to leverage benefits to music artists at growth of streaming industry. While Apple has no issue whatsoever CRB decides on Royalty rate. The whole matter caught fire in one last month and got fierce when star singer wrote a letter to Spotify how they hurt their sentiments with their rogue behavior.
For more information, visit https://www.vulture.com/2019/03/spotify-songwriters-battle-explained.html