Royalty Rates Continue to be Debated

The way artists & labels as well as writers & publishers are compensated is under a microscope with the US Justice Department reviewing consent decrees and the music industry pushing for terrestrial radio to start paying for the use of music. Now some are examining the difference in compensation between labels & artists and writers & publishers. Billboard gets National Music Publishers’ Association (NMPA) president and CEO David Israelite and Atlas Music Publishing CEO Richard Stumpf to weigh in (here).

Both want to see a balance between performer and publisher payout, where the rates would be set by market forces rather than under compulsory licenses. “”The record labels, on behalf of the performers, went in and negotiated very large percentages, which is great but lopsided, in that they’re getting 50% of the money a Pandora will earn, where songwriters are only getting four [percent],” Stumpf says” in the article.