Amazon, Spotify Appeal CRB Decision: Tech companies signal fight to lower recently-raised rates to songwriters

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In observance of Memorial Day to honor all of those who have sacrificed for our country, NSAI will be closed on Monday, May 27th, 2019.

PRESS RELEASE  
For Immediate Release:

March 7, 2019 Media Contacts: Charlotte SellmyerKatie McClenny

 
Amazon, Spotify Appeal CRB Decision 
Tech companies signal fight to lower recently-raised rates to songwriters
 

Washington, D.C.— Today NMPA President & CEO David Israelite and Nashville Songwriters Association International (NSAI) Executive Director Bart Herbison released the following statement on Amazon and Spotify’s decision to file a notice of appeal to the recent Copyright Royalty Board (CRB) ruling raising songwriters’ rates for streaming and other mechanical uses by more than 44 percent. The rate increase came after a lengthy trial where the NMPA and NSAI faced tech giants Google, Apple, Amazon, Spotify and Pandora. This huge victory for songwriters is now in jeopardy due to the streaming services’ filing.

NMPA President & CEO David Israelite: “When the Music Modernization Act became law, there was hope it signaled a new day of improved relations between digital music services and songwriters. That hope was snuffed out today when Spotify and Amazon decided to sue songwriters in a shameful attempt to cut their payments by nearly one-third.

"The Copyright Royalty Board (CRB) spent two years reading thousands of pages of briefs and hearing from dozens of witnesses while both sides spent tens of millions of dollars on attorneys arguing over the worth of songs to the giant technology companies who run streaming services. The CRB’s final determination gave songwriters only their second meaningful rate increase in 110 years. Instead of accepting the CRB’s decision which still values songs less than their fair market value, Spotify and Amazon have declared war on the songwriting community by appealing that decision.

"No amount of insincere and hollow public relations gestures such as throwing parties or buying billboards of congratulations or naming songwriters “geniuses” can hide the fact that these big tech bullies do not respect or value the songwriters who make their businesses possible.

"We thank Apple Music for accepting the CRB decision and continuing its practice of being a friend to songwriters.  While Spotify and Amazon surely hope this will play out in a quiet appellate courtroom, every songwriter and every fan of music should stand up and take notice. We will fight with every available resource to protect the CRB’s decision.”

NSAI Executive Director Bart Herbison stated, “It is unfortunate that Amazon and Spotify decided to file an appeal on the CRB’s decision to pay American songwriters higher digital mechanical royalties. Many songwriters have found it difficult to stay in the profession in the era of streaming music. You cannot feed a family when you earn hundreds of dollars for millions of streams.

“Spotify specifically continues to try and depress royalties to songwriters around the globe as illustrated by their recent moves in India. Trying to work together as partners toward a robust future in the digital music era is difficult when any streaming company fails to recognize the value of a songwriter’s contribution to their business.” Based on today’s actions, NMPA will also file a notice of appeal.

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