Music Publishers, Streaming Services Avoid Another Battle Royale by Setting Royalty Rates for Next Four Years
variety.comJem Aswad Senior Music Editor After a grueling, hard-fought and ultimately victorious legal battle over streaming rates for the years 2018-22, the National Music Publishers’ Association, the Nashville Songwriters Association International, and the Digital Media Association today have announced a settlement with streaming services for certain mechanical streaming rates in the U.S.
for the years 2023-2027: 15.35%. The announcement comes as a surprise, as the NMPA has been saying for months that it would push for a 20% rate for the forthcoming period.
However, sources tell Variety that concessions were made on both sides, likely in the form of modifications that reach beyond the headline rate, such as the way that “bundles” — such as discounted streaming subscription rates for family and student plans — and per-subscriber minimums are treated.
Sources also say that both sides were eager to avoid another protracted and brutally expensive legal battle: The fight over the previous, 2018-22 rate period went on for more than three years and cost many millions of dollars in legal and other fees.
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