Copyright Royalty Board Sets Streaming Royalty Rates For Songwriters For 2018-2022

The Copyright Royalty Board (CRB), an independent federal agency responsible for setting royalty rates for songwriters and composers in the United States, has recently confirmed the streaming royalty rate for the period of 2018-2022. The decision has significant implications for songwriters and the streaming industry as a whole, as it determines the compensation that creators receive for their musical works on digital streaming platforms. This article delves into the CRB's ruling and its potential impact on the songwriting community.

Digital streaming platforms, such as Spotify, Apple Music, and Amazon Music, have transformed the music industry in recent years. While these platforms have provided unprecedented access to music for consumers, they have also raised concerns regarding fair compensation for songwriters and composers. Royalty rates, which determine the amount artists receive for their work, have been a subject of ongoing debate and negotiation between streaming services, rights organizations, and songwriters.

The CRB's Decision: After a lengthy deliberation and consultation process, the CRB has finalized the streaming royalty rate for songwriters for the period spanning 2018 to 2022. The decision establishes the rates that streaming services must pay to songwriters and music publishers for the use of their compositions on their platforms.

That ruling centered on an increase in the overall percentage of streaming services’ US revenues that legally have to be paid by the likes of Spotify to songwriters.

The CRB decided to move that percentage figure up from 10.5% to 15.1% across the five years between 2018 and 2022. It was the largest rate increase in the history of the CRB.

However, Spotify and other music streaming companies, including Amazon and Google/Alphabet ( but not Apple) – subsequently launched a legal appeal against the new rates, arguing that they were unjustified.

The Copyright Royalty Board's confirmation of the streaming royalty rate for songwriters for the period of 2018-2022 marks a significant step towards fair compensation in the digital music landscape. While the decision has been met with some criticism, it reflects an important acknowledgement of the value that songwriters bring to the streaming industry. As the streaming landscape continues to evolve, ongoing discussions and negotiations will be crucial to ensure that songwriters receive adequate compensation for their creative contributions.