Songwriters win 44% streaming payment increase, major streamers react

UPDATED: The U.S. Copyright Royalty Board (CRB) has rejected arguments from Spotify and other music streamers and will significantly increase payments to songwriters and publishers for streams between 2018 and 2022.

In what is the largest increase in CRB history, rates will rise from 10.5% to 15.1% over the five years.

“The [CRB] reaffirmed the 15.1% headline rate increase we earned four long years [ago], confirming that songwriters need and deserve a significant raise from the digital streaming services who profit from their work,” said David Israelite, the CEO and President of the National Music Publishers Association (NMPA) in a statement after the ruling.

Spotify, Google/YouTube, Pandora, and Amazon Music represented by the Digital Media Association (DiMA) – but not DiMA member Apple Music – had fought the increase.

“The decision reflects a significant increase in the royalties that will be paid to publishers,” said Digital Media Association (DiMA) President and CEO Garrett Levin. “The streaming services are committed to working with the MLC and music publishing companies to facilitate the accurate distribution of royalties.”

Setting Rates For 2023 – 2027

Next comes what is sure to be a contentious fight to set rates for 2023 to 2027.

“This proceeding is also a reminder that rate settings do not – and cannot – take place in a vacuum,” continued Levin speaking for the big streamers. “Today’s decision comes as the three major label groups – which operate the world’s three largest music publishers – continue to earn the lion’s share of the industry profits while reporting consistent double-digit revenue growth as a result of streaming.”

Levin continued: “Looking ahead, streaming services believe it’s time for all stakeholders – labels, publishers, writers, artists, and the services – to engage in comprehensive discussions to figure out the right royalty-sharing balance going forward.”

On this point, music publishers at least partially agree. “We will fight to increase the TCC, or percentage of label revenue,” said the NMPA’s Israelite, “which amounts to an insurance policy for songwriters, in the next CRB and will also fight for stronger terms regarding bundles.”

Bruce Houghton is Founder and Editor of Hypebot and MusicThinkTank and serves as a Senior Advisor to Bandsintown which acquired both publications in 2019. He is the Founder and President of the Skyline Artists Agency and a professor for the Berklee College Of Music.