Amazon Music Seeks Lower Royalty Rates for Songwriters and Publishers
What happened
Amazon Music asked federal royalty judges to reduce songwriter rates for the period spanning 2028 through 2032. The company sought a 13.4% revenue rate for its standalone and ad-supported music services, which is lower than the current 15.3% rate set for 2026. The National Music Publishers’ Association opposed the request, with its CEO, David Israelite, criticizing the proposal.
From allhiphop.com
Why it matters
The dispute concerns the earnings of songwriters and publishers generated from song streams. Amazon argued that publishers and record labels have gained market power since the last rate agreement. Leslie Marx’s calculations, which were used in the filing, yield rates approximately 13% below Phonorecords IV levels.
From allhiphop.com
Who's involved
- Amazon MusicOnline music service initiating the rate reduction request
- Leslie MarxEconomist whose calculations formed the basis of Amazon's rate filing
- David IsraeliteCEO of the National Music Publishers’ Association, opposing the rate cut
- AmazonParent company of Amazon Music
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Amazon MusicSpeculative
The service might face regulatory changes that affect its operational costs.
- AmazonSpeculative
Amazon might achieve cost reduction in Amazon Music operations if the regulatory change is approved.
- SpotifySpeculative
Competitors in the audio streaming market might face competitive pressure from Amazon's attempt to lower streaming costs.
Keep exploring
The entities involved
-
Amazon Music
online music service
Nothing else this week.