Late yesterday (October 14), the National Music Publishers' Association made the claim that a number of digital service owners – including Spotify, Apple, Amazon, and Pandora – are trying to cut the amount of money they pay songwriters in the US to the "lowest royalty rates in history".
That claim was made by David Israelite, CEO and President of the NMPA, in reference to a new rate-setting procedure in the States involving the Copyright Royalty Board ('CRB IV') that has just got underway.
CRB IV will result in a new statutory royalty rate paid to songwriters between the years of 2023 and 2027.
Each digital service provider must now file a proposal for what they think songwriters should get paid from their platforms during this period.
These filings aren't yet public, but Israelite claims he knows what's in them – and it's not good news.
In this exclusive Music Business Worldwide Podcast, Israelite sets out his argument, explaining why the NMPA is now demanding that songwriters in the US effectively get 20% of revenue generated by any streaming service.
He also tackles the counter-arguments of Big Tech over a songwriter pay rise head on... and doesn't mince his words.
The MBW Podcast is supported by Voly Music.
Music Business Worldwide's Podcasts are supported by Voly Entertainment (previously known as Voly Music).