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Amazon, Google and Pandora launch coalition to battle digital royalties hike

Posted by Mike McCready | April 30th, 2015 | No responses – 

Amazon, Google and Pandora have joined forces to launch a coalition to oppose efforts from musicians, publishers and record labels to raise digital royalty rates from online services.

The move comes during a review by the 114th Congress and the Copyright Office of US copyright law, while licensing agency BMI is headed to court with Pandora in a royalties’ dispute.

The MIC Coalition, that also includes AM and FM radio broadcasters, digital distributors and restaurants, say: “The next 24 months are pivotal for music, with big decisions coming from the Department of Justice, the Copyright Royalty Board and Congress that will have the potential to determine how and where music is played and what costs consumers and users will bear.”

Commenting on the Coalition’s formation, president of the National Music Publishers Association said: “Streaming giants like Pandora have long exploited these archaic regulations to use songwriters’ work while paying them almost nothing.

“Sadly, it’s no surprise that they are joining other tech and streaming giants to fight the songwriters and artists who made them.”

The Department of Justice could be contemplating allowing US publishers to withdraw partial rights from blanket licenses with performing rights societies. Publishers would be allowed to make direct deals for digital licenses while still using the PROs for administering payments to its songwriters.

Mike McCready is an entrepreneur at the crossroads of music and technology. He pioneered the introduction of Hit Song Science into the music industry and followed up with Music Xray, the company he co-founded and serves as CEO. His companies have been the subject of case studies at Harvard Business School, IESE and he frequently guest speaks at many of the top business schools around the world. He helps the music industry identify high potential songs and talent and helps musicians get deals, get fans, & get better: