As expected, streaming giants, Spotify, Amazon Music, Pandora, and Google Play, have filed appeals due to the Copyright Royalty Board‘s decision to increase rates. The board is working to protect artists’ rights and work but digital streaming services feel walked over. The streaming services feel there wasn’t any hard evidence or explanation given by the CRB, preventing them from fighting back. Now, all they can do is file the appeal and stick together.
As we’ve noted previously, the CRB proposed an increase of 44% in rates by the year 2023. As a result, many artists are for the rate increase as they would likely benefit financially. Unfortunately, digital streamers claim there were ‘several legal errors and a disregard to protocol’. It’s reported that the CRB carried on this rate increase proposal, without proper justification and explanation, as noted by Billboard.
Spotify, one of everyones go-to streaming sites, has noted that they are fine with the rate increase but are still filing an appeal. The main complaint by the streaming services is due to the CRB’s decision to initiated the rate increase retroactively, all the way back to January of 2018. All of the services find this decision unjust, as they claim the CRB has no authority to take such vast actions.
While a rate increase does sound fair if artists do receive higher compensations, consumers should expect to pay higher monthly dues. If the rate increase does take effect, your current streaming service will likely raise subscriber rates to prevent a loss in revenue. Do take note, Apple is not taking part in the appeal process. We’ll keep you posted with any updates regarding the decision and how appeal judges’ view the predicament.