Apple Gains as Songwriters Come Out Against Spotify
In 2017, Spotify launched its Secret Genius Awards annual event to honor songwriters and producers behind some of the streaming platform’s most-played songs. But now some of those same honorees are speaking out about something much less celebrated — Spotify’s plan to appeal Copyright Royalty Board rates, along with Google, Pandora and Amazon.
“We’re hurt and disappointed,” the dozens of songwriters wrote in an an open letter to Spotify on Tuesday (April 9) addressed to Spotify chief Daniel Ek and shared with Billboard. “You created a songwriter relations team and ingratiated Spotify into our community. We know that you are not the only DSP appealing the Copyright Royalty Board (CRB) rate determination. You are, however, the only provider that made us feel we were working to build a modern music industry together.”
It seems silly, from a PR standpoint, that Spotify would pick this battle (along with another two at the same time). But how could the company know that songwriters — and a good segment of the industry — would come together with such force? Historically musicians and their industry don’t exactly agree, delivering a fragmented and unfocused protest at best. Perhaps songwriters have been emboldened by the Music Modernization Act, or the pervasive atmosphere of protest we live in now, or the vilification of the tech industry by its own actions, led by Facebook. A combination of the three is most likely.
Spotify will probably be the loser in this PR war. And the winner might be the tech giant that’s sitting this one out, according to Variety:
Ultimately, Apple, which for years was the company the music industry most loved to hate, is now in an enviable position. If Spotify wins its appeal against the CRB — which is considered a long shot — Apple benefits by paying reduced royalty rates. If Spotify loses the appeal, Apple, by not joining the other streamers, looks like the hero. And
if,at the urging of songwriters, artists start jumping on a #CancelSpotify bandwagon, Apple Music stands to gain subscribers.
“Unlike Spotify, music is not Apple’s core business, thus allowing [it] to sit this one out, with Spotify taking the heat and the legal bills that follow,” says Jeff Rabhan, chair of the Clive Davis Institute of Recorded Music at NYU Tisch. “By choosing to watch this war from the sidelines, Apple has made a brilliant move by making no move at all.”
Spotify is “Effectively Suing Songwriters”
Yesterday (March 7), it emerged that four major owners of digital music services – Spotify, Amazon, Google and Pandora – had lodged legal appeals against the US Copyright Royalty Board’s recent decision to raise streaming royalties for songwriters (and music publishers) by 44%. That royalty rise, which previously looked locked in, is now in serious jeopardy.
Apple Music, in contrast, has accepted the new rates, and declined to challenge what’s viewed as an important pay hike for songwriters.
Remember when Kendrick Lamar and (reportedly) other artists threatened to pull music from Spotify over the arbitrary ‘hate conduct’ ban policy? Spotify quickly backtracked. This might be another opportunity for artists to show Spotify and the streaming industry who really needs who more.
And, as with privacy, Apple continues to brand themselves as the company that does the right thing. I’ll contain my cynicism (which I have for any corporate organization) and say ‘good on them.’