free webpage hit counter

American streaming royalty hike has “little significance for Africa”

American streaming royalty hike has “little significance for Africa”

This follows a move from Spotify, Amazon and Google, among other companies, in 2019, to appeal a CRB decision to increase songwriter and publisher royalty rates for streaming and other mechanical use. The companies claimed that the rates were unjustified.

A royalty rate refers to a share of the total streaming revenue that music streaming services pay to the rights holders. The US exchange rate had not been adjusted for more than a decade despite a significant increase in power revenues and a double-digit growth reported by the big three (Universal, Sony and Warner) in recent years.

The battle for higher electricity prices was intensified ahead of a review of royalty rates last year when the major music streaming services proposed the “lowest royalty rates in history”. This was according to National Music Publishers’ Association (NMPA) president David Israelite.

CRB says the increase will apply to the years 2018 to 2022. NMPA, which lobbied for the increase in 2018 and fought against the appeal of streaming services, welcomed the decision and said that songwriters need and deserve a significant increase from digital streaming services that make money from their work.

This is without a doubt music to the ears of copyright holders in the United States, who should already be looking forward to the next hearing that will determine the royalty rate that streaming services will pay them between 2023 and 2027.

But what does this mean for songwriters and rights holders of music in Africa? Music In Africa contacted Spotify in sub-Saharan Africa to get a comment on how the US ruling will affect players on the continent, but the company’s representatives said they could not comment on the matter. Instead, they referred us to a statement issued by the Digital Media Association (DiMA), a US trade organization that represented each of the music streaming services that appealed CRB’s 2018-22 tariff decision.

See also  Music streaming service Market size, scope and forecast

In the statement, DiMA says that they are committed to working with music publishers and the Mechanical Licensing Collective to facilitate the accurate distribution of the backdated royalties. DiMA President and CEO Garrett Levin said: “[The] The decision reflects a significant increase in royalties that will be paid to publishers. The work of getting effect on these new rates will soon begin in earnest. “

On condition of anonymity, a representative of a major record label in South Africa said that the new development would only benefit African writers, composers and rights holders of music streamed in the United States. “This only applies to composers such as songwriters. So, for example, a South African artist like Black Coffee who produces but does not compose all his music would not benefit from the increased streaming speed, said the music director.

Nevertheless, the Composer Authors and Publishers Association (CAPASSO), a licensing agency for digital rights based in Johannesburg, South Africa, is pleased with the development. CAPASSO CEO Jotam Matariro is sure that the ruling will ultimately benefit African composers. “It does not really affect us directly because we are bound by individual laws in each country across Africa,” he said. “This means that when we negotiate in South Africa, we will consider the new developments in other parts of the world.”

Matariro also took the opportunity to emphasize the importance of establishing shared sheets in the music creation process to limit intellectual property disputes. «The remaining cycle, which is the period in which collected royalties are to be divided, is limited to approximately 18 months, in contrast to the prescription period which is three or five years. What writers and composers do not realize is that they do not have a pension, but it is copyright that keeps them going. This is the money they can put aside in the form of savings. I know that some of them usually ignore it because they think the money is too little or that they can be stolen. “

See also  Korean streaming platforms TVING and Seezn merge - The Hollywood Reporter

Last year, the UK Government’s Department of Culture, Media and Sport called for a “complete recovery” of the streaming economy, with chairman Julian Knight saying “while streaming has made a significant profit for the recorded music industry, the talent behind it – performers, songwriters and composers – losers. Only a complete resumption of flow that legislates their rights to a fair share of the revenue will do. “

You may also like...

Leave a Reply

Your email address will not be published.