Music industry

Music industry avoids legal battle with new streaming royalties deal

Music publishers, songwriters and musicians have reached an agreement with streaming services for mechanical streaming rates in the United States for 2023-2027, the National Music Publishers’ Association (NMPA) has announced. The NMPA, Nashville Songwriters Association International (NSAI), and Digital Media Association (DiMA) agreed to a rate of 15.35%, avoiding a potentially contentious battle.

This is only slightly up from the 15.1% rate from 2018-2022. It’s also less than expected, according to Variety, as previously announced by the NMPA, it was pushing 20%. However, the deal would also modernize the way “package” rates offered to students and families are handled, and increase so-called total content costs, to make up some of the difference.

“This agreement (…) ensures that all parties will benefit from the growth of the industry and will be motivated to work together to maximize this growth,” the press release said. “Instead of going to trial and continuing years of conflict, we instead of moving forward in collaboration with the highest rates ever, guaranteed,” the CEO added. the NMPA, David Israelite.

The last time, a legal battle between the parties lasted three years. The 15.1% rate for 2018-2022 was decided in 2018, but Spotify, Amazon Music, YouTube and Pandora appealed the decision, arguing it would be untenable for their business model. Publishers and songwriters prevailed earlier this year as the Copyright Royalty Board reaffirmed the 15.1% rate.