Spotify

Spotify claims to have overpaid songwriters and publishers last year and now the company is asking to be reimbursed.

The whole question stems from a decision taken by the US Copyright Royalty Board (CRB) that would impose higher payments for content streaming. The increase, which would affect services such as Spotify, Apple Music, Pandora and others, would increase copyright by 43.8% over the next five years.

Also Read: Spotify filed a lawsuit against Apple for its monopoly and devaluation in business

To complicate matters further there would also be discounted student and family subscriptions that would be treated as 1.5 and 0.5 subscribers per month respectively.

Reportedly, Spotify pays $ 0.006 to $ 0.0084 per stream divided between the various rights holders (songwriters, publishers, etc.) and based on its calculations, the company claims to have overpaid songwriters and publishers in the 2018.

According to a spokesman for Spotify, the company would be accommodating on the terms for repayment, in fact it proposed to extend the recovery period until the end of 2019 rather than immediately collect the advance payment of 2018, to minimize the impact of the adjustment on the publishing houses.

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Izaan Zubair
Izaan's inquisitive in technology drove him to launch his website Tech Lapse. He usually writes pieces on emerging technology, anime, programming and alike niches. He can be reached at [email protected]

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