According to Country Aircheck, the Copyright Royalty Board will increase mechanical royalties paid to songwriters over the next five years, from the previous rate of 10.5% to 15.1%. The ruling comes following a trial that took place between March and June last year with the National Music Publishers’ Association (NMPA) and the Nashville Songwriters Association (NSAI), representing the interests of music publishers and songwriters against Google, Amazon, Apple, Spotify and Pandora.
“We are thrilled the CRB raised rates for songwriters by 43.8% – the biggest rate increase granted in CRB history,” says NMPA Pres./CEO David Israelite. “Crucially, the decision also allows songwriters to benefit from deals done by record labels in the free market. The ratio of what labels are paid by the services versus what publishers are paid has significantly improved, resulting in the most favorable balance in the history of the industry.” Adds NSAI Exec. Dir. Bart Herbison, “Songwriters desperately need and deserve the rate increases resulting from the CRB trial. The CRB was a long and difficult process, but songwriters and music publishers together presented a powerful case for higher streaming royalty rates.” More here.