Spotify Demanded Its Money Back From Musicians For Overpaying

Online music streaming services such as Spotify, Apple Music, Pandora,... are currently facing many difficulties when the US Copyright Commission (CRB) mandates increased payments for live streaming content to 43, 8% from 2018 to 2022. Spotify now announces that it overpaid publishers and musicians last year. And according to Music Business Worldwide, Spotify wants its money back.

Spotify has paid about $0.006 to $0.0084 for each stream and the money is shared between holders, including publishers, musicians, etc. The world famous online music streaming service has currently been fighting against the new copyright rates issued by CRB as it thinks both copyright owners and music licensees would be negatively affected.

The discount plan of Spotify for its users makes things even more complicated. In particular, the agreement requires the streaming platform to count one student as 0.5 subscribers a month while family plans are equivalent to 1.5 subscribers a month.

Spotify then recalculated in accordance with CRB's decision and argued that it paid too much money to music publishers in 2018. Therefore, the online music streaming service wants to claim its money back. A spokesperson of Spotify said:

Spotify is a media services provider from Sweden which is famous for its music streaming services.