Streaming Services Must Hike Songwriter Payments Nearly 50%, Court Rules (bloomberg.com)
An anonymous reader quotes Bloomberg:
Songwriters will get a larger cut of revenue from streaming services after a court handed technology companies a big defeat. The Copyright Royalty Board ruled that songwriters will get at least a 15.1 percent share of streaming revenues over the next five years, from a previous 10.5 percent. That's the largest rate increase in CRB history, according to a statement from the National Music Publishers' Association. The decision is a major victory for songwriters, who have long complained they are insufficiently uncompensated by on-demand music services like Spotify and YouTube.
"The ratio of what labels are paid by the services versus what publishers are paid has significantly improved," argues the NMPA, "resulting in the most favorable balance in the history of the industry.
"While an effective ratio of 3.82 to 1 is still not a fair split that we might achieve in a free market, it is the best songwriters have ever had under the compulsory license... The decision represents two years of advocacy regarding how unfairly songwriters are treated under current law and how crucial their contributions are to streaming services."
Meanwhile, the U.S. Congress has introduced a bipartisan "Music Modernization Act" to overhaul the rate court, and to create a new governing agency to issue blanket licenses to streaming services and then collect and distribute the resulting roylaties.
"The ratio of what labels are paid by the services versus what publishers are paid has significantly improved," argues the NMPA, "resulting in the most favorable balance in the history of the industry.
"While an effective ratio of 3.82 to 1 is still not a fair split that we might achieve in a free market, it is the best songwriters have ever had under the compulsory license... The decision represents two years of advocacy regarding how unfairly songwriters are treated under current law and how crucial their contributions are to streaming services."
Meanwhile, the U.S. Congress has introduced a bipartisan "Music Modernization Act" to overhaul the rate court, and to create a new governing agency to issue blanket licenses to streaming services and then collect and distribute the resulting roylaties.
How about my rights, as a web coder, to get paid a percentage every time someone loads a web page I have coded?
... I'm OK with it. My concern is that the publishers and "music catalog owners" will get an overwhelmingly large share of the money, leaving only cookie crumbs to the songwriters and artists.
Let the music industry try to make their own streaming service. I'd love to see the crap that produces.
If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
Well, that sounds easy enough to fix.
Nothing prevents you from paywalling your page.
Other than the lack of a widely used multi-site micropayment service that respects viewers' privacy.
Credit card processors charge a merchant on the order of 30 cents per transaction plus 3% of the value, and the 30 cents greatly overwhelm (say) 2 cents to view an article. Nor is a user who wants to view a single article on a particular site going to want to spend $6 on a 300-pack of article views and waste the other 299 because the purchased views aren't portable to another site.
A multi-site micropayment service would work in one of two ways.
Flat fee Adult Check (because grown-ups can pay for nice things) was a flat $10 per month and paid participating publishers per page view. It was sued out of business when too many participating publishers displayed infringing scans of photos taken from Perfect 10 magazine. Page views Google Contributor charges for a pack of page views. It's pretty much ideal except for two things: First, it charges for reloading an article that the user has already seen recently, which could encourage sites to engage in view fraud by failing to invest in a reliable connection so that the viewer will reload the page more often. Second, it's run by the same company that also runs an ad network. This means Contributor views still get counted toward the click-stream for Google's "interest-based advertising" features, even though the page is served without ads.I did work back in 1985 or so for a guy. I poured a foundation for his house. I think he still lives in the house or maybe he sold it for a profit, I dunno. Can I get a court to rule that he owes me more money for that work? Just because.
It looks like Spotify's share will go down from 29.38% to 24.78%. (The details of the 10.5% "mechanical" rate that's being increased are in footnote 3, which I've read twice and still don't really get.)
Squeeze the guys playing by the rules harder, forcing them to push price hikes to their customers.
It's not like the guys who run Pandora are bajillionaires from it. Yet there seem to be lots and lots of millionaire musicians?
I'm sure this won't drive anyone to piracy at ALL.
-Styopa
It doesn't change what artists get paid. It removes clearing house duties from the distributors (Spotify, iTunes, etc) and makes the government responsible for paying artists. While it is a duty of government to transfer money between appropriate parties (eg. child support), I wonder why a private agency isn't being mandated for this. Most other industries have heavily-regulated and privately-owned clearing houses (eg. debit/credit card transactions). I suspect the government will be absorbing some of the costs of doing business.
"While an effective ratio of 3.82 to 1 is still not a fair split that we might achieve in a free market, it is the best songwriters have ever had under the compulsory license...".. How is this not a free market? So many streaming services, where some are even illegal streaming services. The song writer / singer is free to use whatever platform.. No? Or choose not to use their own platform. Didn't a bunch of music producers even create a platform just to give more money back to the artists? How is that going?
or are they talking about the Kanas City team named after Lourde's song
Some drink at the fountain of knowledge. Others just gargle.
Tax Man
Some drink at the fountain of knowledge. Others just gargle.
I'm assuming it's the latter as the CRB likely doesn't have the right to renegotiate artist/label contracts. Which means the record labels are simply going to be cashing in more. Hopefully they won't pull any bullshit like adjusting rates accordingly so artists still get as much of a percentage as before, and artists will benefit equally (whatever that means, given the atrociously low percentages artists get for their works).
It is pitch black. You are likely to be eaten by a grue.
So, if you take say 5 years to create an album then yes u can demand say 50% or 10% per year. If it takes you 1 year then 10%...5 weeks then 1%. Make up the rest touring. If you write a book same thing, but maybe since the number of words is much more then you offset the % a bit and say double it: 20% for a book that took 1 year to write. Why should someone pay some large % for something that took 1 day to make, when it can be copied so easily.
As usual the music cartel want their cut from revenue as if the cost of storing, managing, and delivering their product for them is zero. The cartel well knows that if it was "of profit" their own "Hollywood accounting" would be used against them.
Patent litigation: A doctrine of Mutually Assured Destruction... in which everyone seems willing to push the button
Next up is higher pay for in the music industry, spotify's own earnings decrease and decrease as more and more fees are added to pay for the music industries greed. Then spotify goes belly up, and music industry loses a gigantic boatload of easy money. Comes up with all kind of excuses and why it's not their fault.
On a long enough timeline, the survival rate for everyone drops to zero.
When you buy an album or a song, you can play it thousands of times.
Streamers are paying per play.
Sounds like a massive overreach by the Government. They really need to stay out of private contracts between adults. The only reason the courts should be involved is if someone broke the law. In addition, if the songwriters are not happy with the terms, don't sign. Maybe I am crazy, but I don't see any good long term benefit from this. As always the Government will expand this further. For those of you that support this action I hope some day when the Government starts reaching more and more into your private lives you are happy that you supported this action.
I get the indignity of the percentages, the cut from revenue and not profit, the general disgust for the music industry, but what about the government? Why does the government need to be involved at all? Since when does the government negotiate contract rates and business deals? This seems wrong in all kinds of ways.