Wixen Music Publishing's massive $1.6 billion lawsuit against Spotify
- Wixen Music Publishing filed $1.6 billion lawsuit against Spotify on January 3, 2018.
Also, the company president Randall Wixen clarified that it and its clients are not taking part in the Music Modernization Act introduced late in December.
Wixen Music Publishing was founded by Randall Wixen in 1978, the California-based publishing company licenses the catalogs of more than 2,000 artists, such as Tom Petty, Neil Young, Jefferson Airplane, The Beach Boys, Black Keys, Missy Elliott and others.
By Wixen's estimates, their stable of artists represents between one to five percent of the music streamed on Spotify.
Wixen Music said in a statement;
"Understanding the value of music and pricing songs accordingly is very important to maintain its worth and not erode its earning power. Some may call our pricing model aggressive; our clients see it as watching out for their interests and getting them the best deal for their song."
“We’re just asking to be treated fairly. We are not looking for a ridiculous punitive payment. But we estimate that our clients account for somewhere between 1% and 5% of the music these services distribute. Spotify has more than $3 billion in annual revenue and pays outrageous annual salaries to its executives and millions per month for ultra-luxurious office space in various cities. All we’re asking for is for them to reasonably compensate our clients by sharing a miniscule amount of the revenue they take in with the creators of the product they sell.”
Back in last May, Spotify reached a $43 million settlement to a class action lawsuit filed by songwriters Melissa Ferrick and David Lowery, the frontman of Cracker and Camper Van Beethoven.
- Apple Music, Tidal, Spotify and others all pay a fraction of a cent per stream, Spotify's per-stream compensation is notoriously low compared to its streaming competition. Spotify's pay-per-stream at approximately $0.0038. By comparison, according to Forbes, Tidal streams yield $0.01 per play, while Apple Music compensates at $0.0064 per stream.
Other factors – global currency, individually negotiated rates – factor into and fluctuate the overall compensation rate, but Spotify's pay-per-stream is well below industry standards, to the point that the streaming services has been repeatedly singled out by artists.
But Spotify has publicly made label contracts a huge priority, and made sure to solidify its relationship with the three majors, such as Warner, Universal, and Sony, last summer, before moving forward with plans to go public sometime this year. It also solidified a catch-all deal with Merlin, the rights agency that handles the majority of independent record label licensing, allowing it access to music from thousands of smaller labels.
- source : Variety