Soon, music streaming companies like Spotify and Apple Music will have to shell out more money to songwriters and music publishers — as royalty payments are reportedly set to increase over the next five years.
US copyright authorizes have revealed the decision was made on Saturday. The Copyright Royalty Board of the US Library of Congress came up with an altered formula to determine how much streaming revenue should be shared with the songwriters and the publishing companies working to put out the music.
According to the The National Music Publishers Association, the report (which has not yet been made public) will boost payout from 10.5 percent to 15.1 percent of all streaming revenue for songwriters and music publishers.
The National Music Publishers Association said the ruling, which has not yet been made public, will require streaming companies to give 15.1 percent of their revenue to songwriters and music publishers. The previous rate was 10.5 percent.
Last year, Spotify, Apple, Alphabet Inc, Pandora Media Inc and Amazon.com Inc. all strongly opposed the NMPA’s rate increase.
A Pandora spokeswoman declined to comment and representatives of Apple, Alphabet, Spotify and Amazon did not immediately return requests for comment, per Money Control.
Source: Money Control