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Apple, in Seeming Jab at Spotify, Proposes Simpler Songwriting Royalties

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The Music Kept Playing
The Music Kept Playing

More skirmishes in the continuing battle between corporate behemoths…

Apple, in a government filing on Friday, proposed simplifying the highly complex way that songwriting royalties are paid when it comes to on-demand streaming services like Apple Music, Spotify and Tidal.

According to Apple’s proposal, made with the Copyright Royalty Board, a panel of federal judges who oversee rates in the United States, streaming services should pay 9.1 cents in songwriting royalties for every 100 times a song is played. This formula would replace the long passages of federal rules for streaming rates, which often leave musicians bewildered about just how the money flows in streaming music.

Apple’s filing was made as part of a proceeding by the Copyright Royalty Board to set statutory rates for downloads and interactive streaming services from 2018 to 2022. Spotify, Google, Pandora, Amazon and the Recording Industry Association of America were all expected to file their proposals by Friday, but the panel has not yet made the filings public.

Although the bulk of Apple’s proposal with the Copyright Royalty Board is confined to three brief paragraphs, it would have wide implications if it were adopted. Songwriting rates paid by interactive streaming services like Spotify are now governed by a byzantine system that includes a division between what are known as mechanical and performance royalties for the same songs. Apple’s proposal would cover all songwriting royalties with the same rate. (Royalties for recordings are accounted separately.)

What Apple does not say in its filing, however, is that the statutory rates it proposes would not apply to its own services. When the company introduced Apple Music last year, it struck direct deals with music publishers at rates that are slightly higher than usual.

(click here to continue reading Apple, in Seeming Jab at Spotify, Proposes Simpler Songwriting Royalties – The New York Times.)

Phil Entering Around Again Records
Phil Entering Around Again Records

Streaming services like Spotify, Pandora et al, do seem to rely upon underpaying artists, or figuring out schemes to avoid payment at all. If musicians cannot make a living creating music, there won’t be any, other than vanity projects, and top 40 bullshit. But then I’m a curmudgeon who still purchases all my music in hard-copy and don’t subscribe to any of these services.

Written by Seth Anderson

July 18th, 2016 at 8:12 am

Posted in Apple,Music

Tagged with ,