Songwriters in the U.S. should see a lift in their measly royalty cheques after the National Music Publishers’ Association claimed victory in its push for a better cut on mechanicals from streaming companies.
Over the weekend, the Copyright Royalty Board of the U.S. Library of Congress announced it had the simplified the multi-tiered process by which royalty payments are calculated for subscription services. Granular details of the ruling remain under lock and key, though the CRA did reveal that streaming companies will be compelled to raises their payouts from 10.5 percent to 15.1 percent of revenue to songwriters and music publishers — a gain of nearly 50% — over the five years from 2018.
That new, higher chunk of cash will be split between the mechanical and performance royalties to publishers and songwriters and will scale-up each year until the end of 2022. It’s the biggest single increase in mechanical royalty rates in CRA history.
The CRB board, which comprises three judges, issued a brief memo on the week to illustrate the changes, which can be seen here.
Songwriters were eyeing a per-stream rate, which they did not get, but the NMPA is nevertheless claiming a “huge win for music creators,” one which projects increases in overall rates and favourable terms.