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It was reported last week that Spotify, along with Google, Amazon and Pandora, had filed a notice of appeal of the decision that had officially released the final rates and terms of the mechanical royalties of songwriters, determining the amount labels and digital services to pay.
Since this announcement, the streaming service has faced negative feedback from the composers community. Well-known songwriters like Natalie Hemby, Lee Thomas Miller and Luke Laird have since shared their feelings about this call on social networks.
Spotify reacted to today's reaction in an article on her blog titled: You may have heard about the CRB's call from the streaming industry – here's what you need to know. The blog opens with:
"In the United States, royalty rates for digital music publishing rights are determined by a panel of judges, the Copyright Royalty Board (CRB). Tariffs also serve as a reference point for services that are not based on government tariffs, and they indirectly influence how publication licensing rates operate around the world. The BRC has recently reached a conclusion on how these rights and rates would work for the coming years. And we appealed the result.
In addition, the publication rejects the fact that Spotify "sues" songwriters and that they deserve to be better paid, but that the industry must "continue to evolve so that the people who create the music we love everyone … make a living. "While Spotify claims to support US effective rates as high as 15% by 2022, they write that" CRB's 15% rate does not take into account all of these rights, "as for video clips and lyrics . To answer the reasoning of the streaming service behind their call, they write:
"The structure of CRB rates is complex and there were significant flaws in the way it was established. Our appeal will focus on the fact that, because of the CRB's decision, it is very difficult for music services to offer "bundles" of musical and non-musical offerings. This will hurt consumers who will lose their access. These bundles are essential to attract new music subscribers so we can continue to increase revenue for everyone.
Music services, artists, songwriters and all other rights holders share the same revenue stream, and it's natural for everyone to want to get a bigger share of this cake. But this can not be done at the expense of the continued growth of the sector via streaming. CRB judges have set the new publication rates on the assumption that record companies would react by reducing their licensing rates, but their assumption is incorrect. However, we are willing to support an increase in songwriter royalties, provided that the license includes the correct scope of publication rights. "
Read the blog in his entity here.
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