Apple has a suggestion on the statutory royalty rate on music download that streaming services are going to pay publishers between 2018 and 2022. According to the New York Times, the government filing was crafted in collaboration with the Copyright Royalty Board, a three-judge panel that sets licensing rates. The royalty rate would be set at 9.1 cents per 100 streams.
Albeit the change would benefit artists, labels, and publishers, it would remarkably hike costs for competing for streaming services like Spotify. Also, if adopted, the new rates would drastically change how rates of songwriting are decided, how much the artists get, and how expensive it is to operate in the streaming business. The panel of federal judges will review the proposal and may amend it in the future, but it doesn’t cover recording’s rates.
Publishers and artists like Taylor Swift aren’t happy about Spotify as it lets users either pay $10 a month to get ads free streaming service or enjoy its ad-supported tier for free. Apple considers this service harmful for publishers and musicians. Well, currently this is just a proposal and according to the New York Times, more proposals are expected to come from Spotify, the RIAA, Google, Pandora, and Amazon.