Spotify's blog post offering its rationale for appealing court-ordered royalty rates for songwriters has been given less-than-stellar reviews from several influential figures across the music business. On Monday, the music streaming leader appealed to artists to argue that while it agrees "songwriters deserve to be paid more," it has qualms with what it deems are "flaws" in the Copyright Royalty Board's rate architecture.
In short, the CRB is boosting mechanical royalty rates on streaming services to 15.1 percent of revenue from 10.5 percent. Spotify argues that the rates fail to cover the "right scope of publishing rights," including those for video and lyrics -- a structure that it believes will make it harder to offer the kinds of non-music "bundles" that help attract new subscribers and retain old ones.
Planted firmly in the "not buying it" camp was David Israelite, the CEO and president of the National Music Publishers Association, who said on Twitter that it was a "big mistake" for Spotify to "try to deceive songwriters and artists" with the blog post.