Nashville Metro Council backs songwriters in dispute with music streaming companies

Nashville leaders are throwing their support behind professional songwriters by requesting that streaming music services Amazon, Spotify, Google and Pandora drop their appeal of a federal court decision that would give songwriters a pay raise.

The Nashville Metro Council adopted the resolution as part of its consent agenda on Tuesday. It is purely symbolic and the streaming giants aren't required to respond.

The resolution, sponsored by Metro Council member Jeff Syracuse, comes just a few weeks after the council voted to dole out $17.5 million in incentives for Amazon to move a corporate hub to Nashville.

Syracuse conveyed his opposition to the incentive package to Amazon, saying it was unfair for companies to choose Nashville because of its creative community, and then stake out policy positions that are hostile toward songwriters. 

Songwriters won a 44.5% increase in their streaming revenues in 2018 following a lengthy federal rate court hearing with the major companies offering streaming.

The rate increase, which increases the percentage of revenue that streaming companies must share with songwriters and publishers from 10.5% to 15.1%, is tiered over five years.

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Industry changes not met with 'copyright maturity'

Syracuse works on Music Row in the licensing division of BMI, one of the nation's largest performance rights organizations, which collects and distributes royalties to songwriters.

"I have seen firsthand how technology changes in the industry have not been met with the needed copyright maturity to ensure creators are properly compensated," Syracuse told the Tennessean. "We can never take for granted what it means to be Music City."

He called it a "critical moment" for Metro Council to add its voice and support for songwriters that are "at the very heart and soul of what makes us Music City."

Music industry leaders, supporters rally support

In recent weeks, the Nashville Songwriters Association International and the National Music Publishers Association added their support for Syracuse's proposal asking the streaming companies to stand down.

"It is important that the Metropolitan Council go on record supporting the recent Copyright Royalty Board decision to award songwriters a rate adjustment of 44.5 percent in digital mechanical royalties," the NSAI board of directors said in a statement. 

"This is the first substantial raise for songwriters in more than 100 years. Although this still does not adequately get streaming music rates to a fair market level for songwriters, it is an important step in that direction."

Professional songwriters, including Buddy Cannon, Larry Shell, Rebecca Wells and Jeff Prince also sent letters to council in support of the artists' case.

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Amazon contends it is appealing the Copyright Royalty Board’s decision primarily because it disagrees with the legal precedent that the ruling set.

The company disagrees with the new rate being applied retroactively to last year and with the process the court used to arrive at its decision. Specifically, it contended that companies offering streaming weren’t able to offer evidence for how the higher rates would affect their business.

Spotify, the world’s most popular streaming service, is still operating in the red. Apple decided not to pursue an appeal

The companies offering streaming services also argued that the music industry has benefited from their major investments and that a large rate increase would harm the growth of the overall music ecosystem.

Amazon spends about 70 percent of its overall streaming revenue on royalty payouts to artists, record labels, publishers and songwriters.

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