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