The streaming royalty rate for songwriters in the USA has jumped 44%. The Copyright Royalty Board has confirmed that compulsory royalty rates in the US market will rise by just under 44% for songwriters over the next five years. The National Music Publishers Association, who lobbied for the improvement, called the ruling a “huge win for music creators”.
The streaming companies will now have to pay songwriters and publishers 15.1 percent of their revenues, up from 10.5 percent with the rate rising over five years. The rate-setting hearing pitted songwriters and publishers against the top streaming companies, including Spotify, Apple Music, Google, Pandora and Amazon. It is the largest rate increase in CRB history.
NMPA President & CEO David Israelite: “We are thrilled the CRB raised rates for songwriters by 43.8% – the biggest rate increase granted in CRB history. Crucially, the decision also allows songwriters to benefit from deals done by record labels in the free market. The ratio of what labels are paid by the services versus what publishers are paid has significantly improved, resulting in the most favorable balance in the history of the industry.”
the CRB also removed the Total Content Cost (TCC) cap.
And an interesting article by Steve Bogard, President of Nashville Songwriters Association International. http://thehill.com/opinion/campaign/373898-technology-robbed-american-songwriters-of-their-income-its-time-the-law