Apple, in a government filing on Friday, proposed simplifying the highly complex way that songwriting royalties are paid when it comes to on-demand streaming services like Apple Music, Spotify and Tidal.
According to Apple’s proposal, made with the Copyright Royalty Board, a panel of federal judges who oversee rates in the United States, streaming services should pay 9.1 cents in songwriting royalties for every 100 times a song is played. This formula would replace the long passages of federal rules for streaming rates, which often leave musicians bewildered about just how the money flows in streaming music.
But even in this seemingly innocuous proposal, which was not made public but was obtained by The New York Times, Apple’s target is clear: Spotify, its archenemy in streaming music. The proposal would significantly raise the rates that Spotify pays, and the filing includes lines that are clearly directed at Spotify and its so-called freemium model.
“An interactive stream has an inherent value,” Apple wrote, “regardless of the business model a service provider chooses.”
A spokeswoman for Apple confirmed the filing but declined to comment further.
Apple’s streaming service, Apple Music, was introduced a year ago, and it has earned the support of many power players in the music industry — including Taylor Swift — because it does not offer a free version, but instead charges about $10 a month. Spotify, begun in Europe in 2008, has both free and paid versions. This has led to a tense relationship with record companies and music publishers, who say the service’s free tier does not pay enough in royalties and devalues their music across the board.
Read the post on the New York Times.