‘Irresponsible and offensive’: NMPA’s David Israelite does not like IMPALA’s new report on the ‘music streaming pie’. At all.

In the first day of this month, IMPALA – the trade body representing independent record companies in Europe – has published an updated manifesto, called “10 points to get the most out of streaming”.

Like MBW reported earlier today (May 17), an updated essay from IMPALA suggested a number of potential changes to the typical streaming royalty model adopted by various music platforms in 2023.

One of these potential changes has always attracted the most scrutiny in the music world: To “reform streaming revenue distribution.”

The IMPALA report argues that record companies (and their artists) will receive a larger share of the overall music-streaming “revenue” generated by DSPs.

IMPALA said labels should get this larger share to cover the “risk and investment” that record companies make in pursuing disruptive artists in the modern era.

‘Part Two’ Controversial to IMPALA’s Argument?

For the recorded music industry’s “streaming slice” to grow, it certainly means that another part of the pie must decrease. And there are only two other ‘slices’: (i) Money paid by streaming services to music publishers and their musicians; and (ii) The amount that streaming services keep after paying the music copyright owner.

The IMPALA report seems to focus on one of these two ‘arrays’: The amount that streaming services pay music publishers and their musicians.

The trade body wrote in its report: “[We] ask if the label is shared [of streaming revenues] are undervalued compared to other parts of the growing industry.”

IMPALA wrote these words in a recent re-publish of data showing the music publishing sector’s share of the UK’s streaming “revenue slice” up from estimates. 8% estimated in 2008 15% in 2021.

During the same time period, the recorded music industry’s share of the “revenue piece” has grown from 51% ARRIVE 53%The data says, while streaming services see the share they keep after paying music rights holders down from 41% ARRIVE 32%.

IMPALA’s questioning of a potential “reform” to the “allocation” of streaming revenue – in relation to music publishing and music recording – is predictably not going to go well for a company that has based in the United States. National Music Publishers Association (NMPA).

After reading the report of IMPALA, NMPA President & CEO, David the Israelite told MBW today: “Reporting by IMPALA to imply that musicians will get less money from streaming models is irresponsible and insulting.

“For years, music industry leaders have worked to eliminate the zero-sum game approach in which record labels and publishers fight each other to split the pie instead of Work together to grow the pie.

“The IMPALA report implying that musicians will get less money from streaming models is irresponsible and offensive.”

David Israelite, NMPA

“The value of the songs cannot be overstated. There is no industry without them. Only in the over-regulated digital streaming economy do musicians struggle constantly to get less than they deserve.

“We are proud that NMPA has significantly increased the amount that musicians and music publishers are paid from streaming models. We don’t see that growth as coming from what is fair to record labels and artists. We’ll continue to find ways to grow the streaming pie and ensure all creators benefit from the growth of the music industry.

“We will never back down, and we will never ignore arguments that try to pit creators against each other instead of against giant tech companies who should pay their fair share. both.”

In the United States, NMPA has successfully fought for a larger share of the streaming “revenue” for its music publisher members.

The Copyright Commission (CRB) recently approved a (nearly) music whole industry settlement improved the rate of streaming royalties of domestic musicians as of January 1, 2023.

The settlement – called ‘Phonorecords IV’ or ‘CRB IV’ – will allow musicians and music publishers to pay a top mechanical royalty rate of 15.35% of a service’s revenue certain interactive streaming services in the United States by 2027.Global Music Business