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Recap: Spotify & NMPA Reach Settlement, Music Metadata and Streaming Focuses of SXSW

Posted by Glen Sears | March 21, 2016 9:49 am | No Comments

Spotify and NMPA reach $30M settlement

Story of the Week

Spotify and NMPA Reach $30 Million Settlement Agreement Over Unpaid Royalties
The National Music Publishers’ Association (NMPA) has announced its successful brokering of a settlement between Spotify and its constituents over unmatched (songs that haven’t received payment because Spotify didn’t identify their publishers) and unpaid song royalties, a topic that has given rise to several legal cases against the streaming services over the past few months.

The settlement process will begin in early April with a three-month opt-in period that will allow NMPA members to participate in the disbursement of an estimated $30 million payout pool. The agreement covers the period between Spotify’s inception though June 30, 2017, with an automatic renewal period tacked on through for another 2 years, through June 30, 2019.

By claiming and proving ownership of songs in the unpaid and unmatched pool of songs, publishers will be paid their share from actual plays of those songs to be drawn from that $25 million. A portal for claimants will open following the conclusion of the opt-in period. In addition remuneration from their claims, publishers will receive further payment, based on each publisher’s estimated market share as calculated by the NMPA, from the $5 million penalty pool.

Finally, any funds left over from the pending and unmatched funding pools for each period will be divided among participating publishers based on their market share on Spotify during that royalty period.

Finish reading the story on Billboard…

Top Music News Stories

Songwriters And Publishers Should Think Twice Before Accepting Spotify’s Settlement. The law firm representing David Lowery in his class action suit against Spotify warns that “It is impossible to determine the true benefit to songwriters because the settlement negotiations between NMPA and Spotify have been conducted without Court oversight.”

Bad Data Is The Worm In The Streaming Music Apple. As one senior executive at one of the biggest global tech companies said, “We love rights fragmentation and complexity: it makes it really difficult for anyone without really deep pockets to compete with us in this market.”

Transparency and Data Problems Hotly Debated During First Week of SXSW 2016. The central issue at hand is incomplete metadata attached to song recordings that are licensed to digital distributors — missing publishing information, unclear songwriting splits and the outdated, overly complex system governing it.

Sony Paid $750 Million For Stake In Sony/ATV That Michael Jackson Aquired For $41.5 Million. Music publishing is still a hot sale target at impressive multiples—and if rate renegotiations continue trending upward and streaming issues get resolved, publishers could be worth even more.

At SXSW, Pragmatism Replaces Panic About Streaming Services. Labels are figuring out how to monetize their catalogs in new ways, and although there can be improvements in how royalties are collected and distributed, the problems don’t overshadow the fact that streaming’s prominent place in the industry has become settled law.

Apple Music, Dubset Partner to Stream Previously Unlicensed Remixes and DJ Mixes. Thousands upon thousands of cool mash-ups and hour-long mixes have effectively been pulled out of the underground and placed onto the world’s second-largest music subscription service.

SoundCloud Signs Deal with Holdout Major Sony Music. “We are very excited to be working with SME,” SoundCloud CEO Alexander Ljung writes in a statement, “and cannot wait to see what we can achieve together as we continue to transform the future of music online.”

Our best wishes for a great week! – MediaNet

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