Some of the world’s largest music streaming services including Apple Music, Spotify, Amazon, Google, and Pandora, have each proposed what they think songwriters should be earning from the years 2023 until 2027.
The rates of pay that they suggested, however, are said to be the lowest ever seen in streaming history - now these companies are coming under fire for their disproportionate royalties, although statistics have yet to be released to the public.
Each of the music streaming companies filed documents this week with the US Copyright Royalty Board (CRB) to suggest new rates of earning for songwriters, a bi-decade recap held in order to regulate royalty rates.
Every five years, the board will come to some conclusion with “momentous consequences for songwriters and music publishers,” according to CEO of the National Music Publishers Association (NMPA), David Israelite.
He told Music Business Worldwide that this is one of the most significant happenings in the music streaming world, although these companies proposals “prove how much, or how little, they truly value the creators they rely on.
“We will be fighting to raise significantly what streaming services pay songwriters, and we will now see with full transparency to what degree Spotify, Amazon, Apple, YouTube and Pandora are trying to cut what little they currently pay,” said Israelite.
Spotify now finds itself under scrutiny along with some of the UK's major labels and will be investigated by the UK’s competition watchdog, who said yesterday that they will be carrying out a "market study" assessment.
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Streaming now accounts for 80% of all music played worldwide - the most dominant way to listen to music over the past near-decade. The watchdog’s chief executive, Andrea Coscelli, said that “the U.K. has a love affair with music and is home to many of the world’s most popular artists.
“We want to do everything we can to ensure that this sector is competitive, thriving and works in the interests of music lovers,” she continued.
Gemma Ross is Mixmag's Digital Intern, follow her on Twitter