15.35% royalty rate increase for songwriters on Spotify and other streaming platforms in the US
Image Credit: SynchedIn
Songwriters will see a 15.35% royalty rate increase from 2023-2027.
The National Music Publishers’ Association (NMPA0, the Nashville Songwriters Association International (NSAI), and the Digital Media Association (DiMA) have announced a 15.35% royalty rate for songwriters in the US, reports MBW.
A joint proposal by the three bodies to the Copyright Royalty Board (CRB) suggests that the new on-demand streaming mechanical rate in the US should be increased to 15.35% over the 2023-2027 period.
This agreement will provide higher royalty rates for songwriters and music publishers, promote sustainability, innovation, and continued investment for the entire industry, and usher in a new era of collaboration between all parties.
NMPA, DiMA, and NSAI
Though the CRB may still reject the proposal should reasonable objections come to pass, the digital music and music publishing representitives have come to agree on the royalty increase.
Therefore it’s hopeful that the CRB will also agree with the proposal.
However, the increase will be phased in over the five-year term time rather than at once.
Speaking on the matter, a joint press release by the NMPA, DiMA, and NSAI explains:
“The deal also includes a number of changes to other components of the rate, including increases to the per-subscriber minimums and the ‘Total Content Costs (TCC)’ calculations which reflect the rates that services pay to record labels.
The press release continues: “As streaming services continue to innovate to deliver songwriters’ works to growing numbers of paying fans, the agreement also modernizes the treatment of “bundles” of products or services that include music streaming and updates how services can offer incentives to attract new subscribers into the music ecosystem.”
This historic settlement is the result of songwriters making their voices heard. Instead of going to trial and continuing years of conflict, we instead move forward in collaboration with the highest rates ever, guaranteed.
David Israelite, NMPA President & CEO