Apple's New Music Royalty Proposal Would Make Streaming Costlier for Free Services Like Spotify
Apple has submitted a proposal to the U.S. Copyright Royalty Board calling for a simplified way to pay songwriters and music publishers for streaming music, according to Billboard. While the change would benefit labels, artists and publishers, it would make it more difficult for streaming services like Spotify to continue offering free tiers.
Apple, which has always had a gift for creative simplicity, wants to make this process easier and more transparent, according to a copy of the filing obtained by Billboard. The company’s proposal to the Copyright Royalty Board suggests a simple, “all-in” statutory rate that would be “fair, simple and transparent, unlike the incredibly complicated structure that currently exists.”
Apple's suggested rate is 9.1 cents per 100 plays, which would make the songwriting royalties for 100 streams equal to the royalties for a single song download. However, the change would make it more expensive for companies like Spotify and YouTube to offer free music tiers.
The current system sees streaming companies paying songwriters and publishers between 10.5 and 12 percent of their revenue using what Billboard terms a "complicated formula." The money is then divided into public performance and mechanical royalties, which is then paid to publishers and "collected societies." Currently, Apple and other streaming music providers don't have to pay publishers the statutory rate set by the Royalty Board because they can negotiate their own deals. However, negotiations between publishers and streaming services would start at a different place should Apple's proposal become rule.
The Copyright Royalty Board, which is made up of a panel of three judges, is still in the early stages of determining potential statuary rates for 2018 to 2022 so it's unclear whether Apple's proposal would take hold or ever come to be.
While Apple Music has garnered about 15 million paying subscribers in the year since its launch, rival Spotify has twice as many, with the company citing Apple's entrance into paid music streaming as a boon to its business. Despite user and revenue growth, Spotify continues to operate at a loss due to expensive royalties and revenue sharing with music labels, with recent losses growing 10 percent to $195.7 million.
Popular Stories
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development.
Below, we recap rumors about a second-generation AirTag.
Timing
Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence.
Image credit: Reddit user No_Highlight7476
The Turbo feature provides enhanced network performance through ...
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1.
The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false.
The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick.
"We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote.
If that measurement proves to be accurate, there would be ...
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices.
With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...
Apple has partnered with select merchants to offer Apple Card users three percent Daily Cash back on their purchases, and two new companies were added to the partner list today. When purchasing goods and services from Booking.com and ChargePoint, Apple Card users will now get more cash back.
Booking.com is a site for reserving flights, cars, cruises, and hotels, while ChargePoint sells...