Spotify Wants a Refund On Overpaid Royalties To US Songwriters, Report Says (cnet.com) 38
Spotify is reportedly seeking a refund for overpayments made to songwriters and publishers last year, according to a report from Music Business Worldwide. CNET reports: Last year, a royalty rate-setting panel in the U.S., called the Copyright Royalty Board, ruled that a particular kind of royalty paid to songwriters and publishers should rise 44% or more for 2018 through 2022. The board finalized that rate -- called a mechanical royalty -- earlier this year. Then streaming services like Spotify, Amazon, Google and Pandora appealed the payment increases in March. Now Spotify is saying it paid too much last year and wants a refund, according to Music Business Worldwide.
The CRB rules say the annual streaming royalty rate for US songwriters and publishers between 2018 and 2022 should be set by choosing the highest outcome of three different models, with one model based on a flat fee per subscriber, Consequence of Sound noted. But Spotify's student discount and family plan bundles add a layer of complexity. The Copyright Royalty Board's rules say a family plan is be worth 1.5 subscribers per month and a student plan is equal to half a subscriber per month. The family plan lets six people subscribe for $15 a month, while students pay $5 a month. (A regular subscriber pays $10.) The argument by Spotify seems to be that it didn't take some subscribers into account and overpaid publishers. It's not seeking the 2018 money back immediately, but "offered to extend the recoupment period" until the end of 2019, according to Music Business Worldwide.
The CRB rules say the annual streaming royalty rate for US songwriters and publishers between 2018 and 2022 should be set by choosing the highest outcome of three different models, with one model based on a flat fee per subscriber, Consequence of Sound noted. But Spotify's student discount and family plan bundles add a layer of complexity. The Copyright Royalty Board's rules say a family plan is be worth 1.5 subscribers per month and a student plan is equal to half a subscriber per month. The family plan lets six people subscribe for $15 a month, while students pay $5 a month. (A regular subscriber pays $10.) The argument by Spotify seems to be that it didn't take some subscribers into account and overpaid publishers. It's not seeking the 2018 money back immediately, but "offered to extend the recoupment period" until the end of 2019, according to Music Business Worldwide.
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Sounds like something that should be the target of an anti-trust investigation
You appear to be new to this discussion.
We are talking about the member states of the RIAA (Score:2)
right? They might actually die from laughter before being able to tell Spotify to fuck off.
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Spotify is seeking a refund. They may get it. Or, they may not. But it's not a case where anything will fundamentally change.
And telling people to fuck off is impolite. And generally counterproductive.
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fuck off
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That's not what royalties are for. Royalties are for record companies to grab.
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That's not what royalties are for. Royalties are for record companies to grab.
Citation needed.
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That's not what royalties are for. Royalties are for record companies to grab.
Citation needed.
This was written before streaming was a thing but heres how a band who has sold a million records might as well not bothered. The system is still largely the same.
https://www.salon.com/2000/06/... [salon.com]
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I think they'd say that they're happy to pay royalties in general. And they recognize those who make the product.
Why can't a dispute like this simply mean that there is a disagreement as to what's fair? And not an evil plot?
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I think they'd say that they're happy to pay royalties in general. And they recognize those who make the product.
Record companies see artists as "outsiders", the people who they have to use to generate revenue.
Music industry insiders write books to tell artists just how bad the music industry is. For my band, we are finalizing our second album but haven't released anything yet because the music industry is a highly risky option that we maybe able to avoid.
Why can't a dispute like this simply mean that there is a disagreement as to what's fair? And not an evil plot?
Such a disagreement would imply two equal parties. In reality the band party is usually poor, sometimes desperate and unaware of the value of their own art.
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"Apple for hosting their app "
And how do you load apps on an iPhone unless you pay Apple's extortion fee to be in the Apple Store?
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And how do you load apps on an iPhone unless you pay Apple's extortion fee to be in the Apple Store?
I'm no fan of Apple, but "extortion fee"? Back when I had an iPhone, I never paid anything, (other than the price of the phone of course,) for the dubious privilege of using Apple's app store.
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spotify is deluded (Score:2)
No way the copyright mafia is going to do that. More likely they hit spotify with some trumped up complaints and send them a bill.
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I wonder who, exactly, the copyright mafia are.
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I think they play at the Vet's Club on Wednesdays.
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i think he's refering to the musicians who are getting $50 a year return on album that cost them tens of thousands to record.
Spotify are legalized pirates. One of my albums has had 50K+ listens and while I'm supposed to have made around $300 from it, I've yet to recieve a cent.
I make more than that from CD sales on an average sized pub gig, and who the fuck listens to CDs these days anyway. The hipsters have all reverted to vinyl and everyone else just listens to MP3 or equivilent
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i think he's refering to the musicians who are getting $50 a year return on album that cost them tens of thousands to record.
Spotify are legalized pirates. One of my albums has had 50K+ listens and while I'm supposed to have made around $300 from it, I've yet to recieve a cent.
Don't you get to choose if its on there?
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Buy CD you like, rip to MP3, put CD away for safekeeping.
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i think he's refering to the musicians who are getting $50 a year return on album that cost them tens of thousands to record.
Spotify are legalized pirates.
Amen brother! We decided long ago to control the recording process as much as possible to ensure we owned the process. I don't know if it is worth it yet but the music industry looks like such a pit of vipers I don't think it is worth dealing with them vs figuring out what we can do for ourselves.
One of my albums has had 50K+ listens and while I'm supposed to have made around $300 from it, I've yet to recieve a cent.
Do you own all the rights to your music? Are you entitled to the mechanical and songwriting royalties? Plus sleath_finger's great question?
I make more than that from CD sales on an average sized pub gig, and who the fuck listens to CDs these days anyway. The hipsters have all reverted to vinyl and everyone else just listens to MP3 or equivilent
Time for a new business model, I keep thinking.
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Citation?
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Spotify pays the lowest royalty rate of anyone short of out and out pirates. And now they want to pay less?
Well yeah, if at all possible they'd rather not pay anything.
Trying to get money back from a musician (Score:2)
is be worth (Score:1)
That's some jive talk!