Apple Wanted to Revolutionize the Way Streaming Pays. Here’s Why It Wasn’t Allowed

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Apple Wanted to Revolutionize the Way Streaming Pays. Here’s Why It Wasn’t Allowed
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Spotify and Amazon are battling the Copyright Royalty Board over streaming royalty rates. But if Apple had its way, things could have been very different

from on-demand streaming services in the United States. That pay rise could be significant, increasing the royalty checks coming out of these platforms, and others like them, by at least 44% between 2018 and 2022.

Testifying on behalf of Apple on March 8th, 2017, Dale Cendali of legal giant Kirkland & Ellis told the CRB that “the current rate structure is overly complicated and lacks transparency because royalties depend on the amount of revenue a service generates … this means you can have one company pay one rate for a stream, and another company pays a different rate … and because of that, songwriters may receive different compensation even though it is the same song being streamed.

Interestingly, this rejection came after a period of intense lobbying from Apple’s competitors. Both Spotify and Google, to name two, were very keen to throw out any notion of a per-play payment system, after music publishers initially suggested that a per-streamwritten testimony to the CRB dated February 2017

In other words, we should pay writers and artists less money per stream … in order to pay writers and artists more money overall. noted in February 2017 McCarthy further argued that a per-stream rate would “disincentivize Spotify and other providers from encouraging listening” and would in fact “incentivize services to decrease engagement” — i.e., platforms like Spotify might actually try to limit the number of streams being played on their own platforms each month in order to keep costs down.

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