The Value of Music
The music industry has been debating the cost of music for years, and recently, Oliver Schusser from Apple Music shared his thoughts on the matter. During a keynote interview at the annual meeting of the National Music Publisher Association in New York, Schusser expressed his concerns about competing streaming platforms offering free levels, which he believes devalues music as an art form.
The Cost of Free Music
"I think it’s crazy that we still offer music for free after 20 years," said Schusser, Vice President of Apple Music and International Content. "We are the only service that has no free service. As a company, we consider music as art and never want to give away art for free." Schusser’s comments were not directed at a specific streaming service, but many of Apple Music’s competitors, including Spotify, offer free ad-supported levels.
Response from Spotify
In response to Schusser’s comments, a Spotify spokesperson stated that the company is still the largest driver of sales in the music industry and that its ad-supported level helps attract more fans who can then convert to premium offers. "Spotify has paid over $10 billion to the music industry, more than any other retailer or streaming service," said the spokesperson. "Our multi-tiered model is a key factor in paying more to songwriters and publishers than any other service."
The Price of Streaming Services
The price of streaming services is a hotly debated topic in the music industry, with many arguing that services could still reflect a higher value for music. Sony Music CEO Rob Stringer has suggested that users of ad-supported services should pay a "modest fee" for the service. Meanwhile, the National Music Publisher Association (NMPA) reported that music publishing income in the United States rose to over $7 billion last year, a 17% jump from the previous year.
Challenges Facing the Music Industry
Despite the growth in music publishing income, the NMPA pointed out that challenges such as government regulation and bundling of subscriptions with other services are suppressing growth. The organization also criticized Spotify and Amazon Music for offering their subscriptions as bundles with audiobooks, which has resulted in lost revenue for songwriters. "We lost over $230 million last year due to these tactics," said Danielle Aguirre, NMPA’s General Counsel.
The Importance of Fair Compensation
The NMPA is advocating for fair compensation for songwriters and publishers. "The entire system suffers without a healthy songwriter economy," said David Israelite, NMPA CEO. "I call on artists, managers, and record labels to stand with songwriters whenever and wherever they strive." The organization also pointed out that social media platforms such as TikTok are failing to provide adequate compensation to songwriters, with Aguirre stating that the platform generated $18.5 billion in revenue last year, with 85% of its videos featuring music.
Awards and Performances
The NMPA meeting also included several awards and performances, including the presentation of the Breakthrough Songwriter of the Year award to Gracie Abrams and the Triple Threat Award to Aaron Dessner. The evening also featured performances by Kacey Musgraves, Thomas Rhett, and Leon Bridges, among others. The event highlighted the importance of supporting songwriters and the need for fair compensation in the music industry.
