The Borneo Post (Sabah)

Apple wins in Spotify’s battle against songwriter­s’ rate hike

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LOS ANGELES: In the fight between Spotify and songwriter­s seeking a rate hike, Apple is the real winner.

Streaming giant Spotify, after years of attempting to placate the songwritin­g community, is now at the front of an effort to pay it less.

It’s a move that has seen the company, the market leader with 87 million worldwide subscriber­s, hand second-place Apple, with an estimated 43.5 million subs, an opportunit­y to make up ground.

At issue is the Copyright Royalty Board’s (CRB) 2018 decision to raise the rate paid to songwriter­s by 44 per cent over the next five years. Spotify, along with three other streaming services — Amazon, Google and SiriusXM/Pandora — is appealing that decision to the board, a move that has no direct precedent. The four companies have been shellacked with criticism by artistes for their action.

While the streamers claim that their objection is to the CRB’s complex rules, particular­ly in the realm of bundling — including student and family subscripti­ons — there is little question that their primary goal is a lower rate. Apple, which would also benefit if the rate increase is nullified, is not part of the appeal.

The rights battle is particular­ly ill timed for Spotify, which was lambasted last year for a short-lived attempt to ban artistes from its playlists whom it judged were releasing “hateful content” or taking part in “hate conduct.” The service pivoted, highlighti­ng its Secret Genius programme, aimed at helping songwriter­s and producers by providing marketing campaigns and awards. Now, with Spotify’s opposition to the rate hike, creatives are questionin­g the company’s sincerity in claiming to be on the side of songwriter­s.

“We’re confused and hurt” by Spotify’s action, says songwriter Ross Golan, who hosts the popular “And the Writer Is …” podcast. “This one stings on multiple levels because here was this company that (through Secret Genius) reached out to songwriter­s and producers with hundreds of thousands, if not millions, of dollars’ worth of marketing in creating this environmen­t where songwriter­s, artistes and Spotify were building something together. We want the relationsh­ip, but don’t make it fake.”

 ?? — AFP file photo ?? A man walks by the New York Stock Exchange on the morning that Spotify begins trading shares at the NYSE on Apr 3, 2018 in New York City.
— AFP file photo A man walks by the New York Stock Exchange on the morning that Spotify begins trading shares at the NYSE on Apr 3, 2018 in New York City.

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