Spotify says it will possibly’t pay songwriters higher royalty charges. It’s additionally spending $320 million on a Barcelona sponsorship deal.

Date:


“It’s pure for everybody to desire a larger piece of the pie. However that can’t come on the expense of constant to develop the business through streaming.”

So stated Spotify in 2019, when making an attempt to persuade US songwriters that its authorized attraction towards their recently-mandated pay rise from streaming wasn’t truly the financial equal of jamming a rusty coat hanger into their unmentionables – it was, in actual fact, merely the honest and pragmatic factor to do.

The intimation in Spotify’s phrases, there? There isn’t sufficient cash within the present ‘streaming’ pie construction for songwriters to receives a commission extra, with out hurting Spotify’s personal means to function efficiently..

This argument was even made clear in a 2016 submission from Spotify’s Paul Vogel to the Copyright Royalty Board, during which he stated – stunningly direct quote – “decrease royalty charges are important to Spotify’s future”.

Since Spotify’s 2019 assertion, its try and claw again cash from songwriters within the US has gone to the subsequent stage.

SPOT’s preliminary attraction towards the US songwriter pay rise, as adjudged by the Copyright Royalty Board, lined the years from 2017 from 2022.

However in October 2021, it turned public data that Spotify was now additionally making an attempt to suppress songwriter streaming pay charges for the next 5 years (2023-2027), too.

In each instances (2017-2022; and 2023-2027), Spotify desires to maintain songwriter pay at simply 10.5% of its service’s revenues (with further ‘carve out’ deductions thrown in for the latter interval).

That’s round a 3rd of what Spotify itself retains from its subscription and advertisements revenue (i.e. a 30% reduce). And it displays a songwriter royalty charge that Warner Chappell‘s Man Moot and Carianne Marshall yesterday (February 7) branded “appallingly low”.

So, bear in mind: Spotify says it will possibly’t spare any more cash to pay songwriters a greater charge.

Certainly, it argues that not doing so is such a necessary red-line, it’s actually “important” to its firm’s future.


Now, on to some completely unrelated information: Spotify is reportedly on the verge of putting a deal to splurge USD $320 million (€280m) on a brand new sponsorship settlement with Spanish soccer workforce Barcelona.

In response to the Guardian, the settlement would see Spotify’s brand splashed throughout Barca gamers’ shirts, and would additionally include naming rights for the historic Barcelona stadium, the Camp Nou.

The Spotify deal is predicted to be introduced this week, and can then come into impact this summer season after Barcelona’s contracts with their major sponsor, Rakuten, and secondary sponsor, Beko, each finish.

Amid Spotify’s reported negotiation with Barcelona, the membership’s CEO, Ferran Reverter, this week resigned “for private and household causes”.

MBW is unaware of Reverter being a credited songwriter on any vital pop compositions.


Spotify final week introduced its This fall 2021 outcomes.

It confirmed that its Premium Subscriber base grew to 180 million on the shut of December.

That was up by 8 million subscribers (5%) on the 172 million that the corporate counted on the finish of the prior quarter (Q3 2021)Music Enterprise Worldwide

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