“This afternoon, Apple submitted a preliminary proposal to the U.S. Copyright Royalty Board to simplify the way music-streaming companies pay songwriters and publishers — in a way that could make it more expensive for rivals like Spotify and YouTube to keep offering free streaming,” Robert Levine reports for Billboard.

“Right now, streaming companies pay songwriters and publishers between 10.5 percent and 12 percent of their overall revenue, according to a complicated formula,” Levine reports. “Apple, which has always had a gift for creative simplicity, wants to make this process easier and more transparent, according to a copy of the filing obtained by Billboard. The company’s proposal to the Copyright Royalty Board suggests a simple, ‘all-in’ statutory rate that would be ‘fair, simple and transparent, unlike the incredibly complicated structure that currently exists.'”

“It suggests a rate of $0.00091 per interactive stream, or 9.1 cents per hundred plays,” Levine reports. “The songwriting royalties for 100 streams would equal those for one download, which has an appealing simplicity.”

Read more in the full article here.

MacDailyNews Take: Anything that hastens the death of free tiers is good for artists and Apple.

Musicians and the music industry undermines themselves by allowing their music to be streamed by “free,” ad-supported outfits.MacDailyNews, December 17, 2015

The record labels should smarten up and demand fair payment for supplying content to services that offer free tiers which will kill those tiers with great immediacy.MacDailyNews, October 8, 2015

SEE ALSO:
In likely boon for Apple Music, Copyright Royalty Board raises rates on free music services – December 17, 2015
Why Apple wants to kill free music – October 8, 2015
Apple Music’s huge advantage over Spotify – June 9, 2015