Yesterday (August 31) brought good news for musicians and publishers in the US.
National Association of Music Publishers (NMPA). ‘.
These procedures, for many years 2023-2027, will be conducted by the end of this year.
It follows an earlier legal battle between publishers and streaming services in the US known as ‘Phonorecords III’, for five years between 2018 and 2022, where the CRB decided to increase the percentage of musician/publisher royalties for streaming and other mechanical uses from 10.5% arrive 15.1% .
Spotify and many other music streaming platforms appealed that ruling, but last monthCRB officially warrants that 15.1% rates for publishers and musicians.
Under the new agreement, for many years 2023-2027the royalty rate of the headline will be set at 15.35%, which according to a press release issued by NMPANSAI and DIMA yesterday, will be phased in for a period of 5 years.
The press release adds: “The agreement also includes a number of changes to other components of the rate, including an increase to the minimum per subscriber and Total Content Cost (TCC) ), that is, the calculations reflect the fees paid by the service to the record labels. “
That 15.35% rate is slightly higher than the current 15.1% rate, but lower than 20% offer by NMPA last year.
According to a joint announcement issued yesterday by music publishers and digital services, “[This 15.35%] The deal will provide higher royalty rates for musicians and music publishers, promote sustainability, innovation and continued investment for the entire industry, and usher in a new era of collaboration. between all parties. “
As noted in our report Yesterday, the proposal could still be rejected by the CRB if significant opposition to its proposal arose, but all stakeholders in the proposal hoped that the CRB would give the green light to the proposal. it.
Music publishers responded positively to the news. Here’s what some of them had to say:
In a statement published on Twitter, President and CEO of Sony Music Publishing, Jon Platt, said: “Today marks an important achievement for the songwriting community. An agreement has been reached in the United States Copyright Commission’s (CRB) Phonorecords IV proceeding to increase fees paid by audio-only streaming services to music publishers and musicians in the United States in the next 5-year term starting from 2023
“The settlement is a significant victory for musicians and composers, reflecting years of effort and difficult litigation. It also gives more certainty over the next 5 years because unlike a trial, there is no chance of appeal.”
Jon Platt, Sony Music Publishing
“With this deal, the title rate will increase from 15.1% to 15.35% over the next five years, while also improving the replacement rate structure by increasing the minimum per subscriber. implement better terms for package services and increase the total cost of content that guarantees a percentage of what the record labels are paid
“The settlement is an important victory for musicians and composers, reflecting years of effort and difficult litigation. It also offers more certainty over the next five years because unlike a trial, there is no chance of an appeal.
“Congratulations to all of the incredible musician support groups that made this possible, including NSAI, SONA the 100 Percenters and BMAC.
“While much remains to be done in the battle for better musicianship and recognition, today marks an important milestone for the industry. I look forward to working together as we continue to advance the value of musicians across the business. Above all – I want to thank you, the creators and sunrise of SMP. Thank you for your cooperation and collaboration.”
Popular music Publishing group
Jody Gerson, President and CEO of Universal Music Publishing Group, said: “We welcome today’s announcement that will see mechanical royalties increase to 15.35% paid to musicians. in the United States from 2023 to 2027.
“This is the result of a long-term collaborative effort by NMPA, NSAI, our team members, and from across the broader creative community in the United States to ensure fair recognition and compensation for our writers.”
Jody Gerson, Universal Music Publishing Group
“This is the result of a long-term collaborative effort by NMPA, NSAI, our team members, and from across the broader creative community in the United States to ensure fair recognition and compensation for our writers.
“Having worked together as an industry to secure a fixed increase in the Phonorecords III case last month, we are grateful for the newly strengthened partnership with DSP, which will help recognize the value that musicians bring to the world, both now and in the future.”
In a statement posted on social media, Warner Chappell Music told its musicians: “You have joined us in this fight, and we wouldn’t be here without you. While there will always be more work to do to make sure you get what you deserve, we’re still optimistic about the future.
“Today, after months of negotiations, NMPA and NSAI on behalf of all musicians and publishers have reached an agreement with streaming services to set the highest copyright rate in streaming history. online anywhere in the world.
“While much remains to be done, this is an important and historic moment in the ongoing battle for fair compensation for musicians.”
Music Warner Chappell
The settlement will also improve the replacement rate structure by increasing the minimum per subscriber, providing better terms for music product bundles with other services, and increasing the level of rights. Songs are paid as a percentage of total content cost (TCC) i.e. the amount the record label is paid.
“While much remains to be done, this is an important and historic moment in the ongoing battle for fair compensation for musicians.”
Merck MercuriadisFounder and CEO of Hipgnosis Songs, said: “I would like to congratulate David and Bart and their teams at NMPA and NSAI respectively.
“Hipgnosis has fought and supported musicians for every day of its existence. That’s why I founded the company.
“Musicians winning a CRB III call-out is a hugely important step, but it’s an imperfectly positive step. What has been achieved with this CRB IV result improves that dramatically and gives Songwriters stability for the next 5 years without controversy or fear of being challenged at the highest price ever paid. in the streaming era. As for streaming services, DIMA and Garrett Levin should also be welcomed.
“This is another important step towards finally recognizing that Musicians and Songs are the most important components in the music industry.”
Merck Mercuriadis, Hipgnosis Songs
Mercuriadis added: “This is another important step towards finally recognizing that Musicians and Songs are the most important components in the music industry.
“I’ve always believed that in order to get Songwriters where they really deserve to be in the economic equation, we’re going to have to get rid of the law and have proper free market negotiations with record companies and services. streaming online. They are the best place to recognize and reward the incredible contributions of Musicians because without them their business would not exist.
“The stable foundation over the next 5 years provided by what has been achieved with CRB IV will allow us to ensure that no further discussions take place to determine how a Songwriter is paid. money without Musicians at the table expressed the consensus view and needs of the Composing community along with NMPA, NSAI, DIMA, Spotify, AppleUniversal, Sony, Warner, BMG et al.”
Kobalt Music
In a statement posted on social media, Kobalt Music said: “From day one, we have advocated transparency and fair compensation for musicians, while embracing the digital transformation of the industry. music industry.
“Today’s settlement is a historic day for musicians, ensuring the highest attraction rates in the world and a win for all.”
Kobalt
“Today’s settlement is a historic day for musicians, ensuring the highest attraction rates in the world and a win for all.”Worldwide music business
