Sony/ATV Music Publishing chief Martin Bandier has celebrated the new Copyright Royalty Board decision regarding interactive streaming royalties in the US market, calling it “very positive” for songwriters and publishers.
As reported yesterday, the CRB has handed down its decision for new compulsory mechanical royalty rates in the States.
Overall royalty payments will rise from from 10.5% to 15.1% over the next five years (2018-2022) for on-demand streaming services – the largest rate increase in CRB history.
According to the NMPA, that will mean that publishers and songwriters are paid slightly more than a quarter of what their recorded music copyright holders receive from the likes of Spotify, Apple Music and Google Play.
Sony/ATV Music Publishing CEO and Chairman Martin Bandier (pictured) has, on balance, expressed his excitement over the news.
However, like the NMPA, he says he remains disappointed that a per-stream minimum rate was not set by the CRB.
“As the leading music publisher, we believe that overall this is a very positive ruling by the CRB as it will deliver an unprecedented topline rate increase for songwriters and publishers over the next five years,” said Bandier.
“While we are disappointed not to get the per-stream rate that we wanted, the planned rate increases go a long way to fairly compensate our songwriters for the essential contribution they make to streaming’s success story.”
“While we are disappointed not to get the per-stream rate that we wanted, the planned rate increases go a long way to fairly compensate our songwriters for the essential contribution they make to streaming’s success story.”
Martin Bandier, Sony/ATV
Others have also chimed in on the decision.
“The AIMP is thrilled with today’s announcement of the 44% increase in interactive streaming mechanical rates over the next 5 years — the biggest increase in the history of the CRB and the compulsory license,” said Association of Independent Music Publishers (AIMP) President Michael Eames, AIMP New York Executive Director Alisa Coleman, and AIMP Nashville Executive Director John Ozier in a joint statement.
“The additional benefits obtained from the late fee granted in the decision plus the removal of the Total Content Cost (TCC) cap are sorely needed elements in our path towards equitable compensation for the use of our music in the ever-growing digital economy.
“This is an incredible victory and a testament to the great work of David Israelite and the NMPA Board and staff, Bart Herbison and the NSAI Board and staff, and their collective legal team. Songwriters, composers, and publishers all owe them a debt of gratitude for their tireless efforts on our behalf, and the AIMP leadership and our 1,000 members nationwide salute and thank them.”Music Business Worldwide
