US to make streaming services pay more for music

US to make streaming services pay more for music
Stock image of the Spotify application being used on a smartphone. (Shutterstock)
Updated 28 January 2018

US to make streaming services pay more for music

US to make streaming services pay more for music

LOS ANGELES: US copyright authorities on Saturday decided to increase over the next five years the royalty payments music streaming companies like Spotify and Apple Inc. must make to songwriters and music publishers, a trade association for music publishers said.
The Copyright Royalty Board of the US Library of Congress issued a written decision that altered the formulas used to determine how much of their revenue streaming companies must share with songwriters and the music publishing companies they typically hire to collect licensing fees on their behalf.
The National Music Publishers Association said the ruling, which has not yet been made public, will require streaming companies to give 15.1 percent of their revenue to songwriters and music publishers. The previous rate was 10.5 percent.
The board, which consists of three judges, held a trial last year in which the trade group squared off against Spotify, Apple, Alphabet Inc, Pandora Media Inc. and Amazon.com Inc, which had opposed NMPA’s proposed rate increase.
“This is the best mechanical rate scenario for songwriters in US history which is critically important as interactive streaming continues to dominate the market,” said NMPA chief executive David Isrealite in a statement.
A Pandora spokeswoman declined to comment.
Representatives of Apple, Alphabet, Spotify and Amazon did not immediately return requests for comment.
Streaming services must pay a fee, known as a “mechanical license,” every time a user listens to a song.
These licensing fees are typically paid to music publishing companies like Sony/ATV Music Publishing, which collect the fees on behalf of recording artists in exchange for a commission.
US law requires the Copyright Royalty Board to set the rates for these mechanical licenses, rather than letting publishers negotiate rates with streaming services.


Twitter faces a rocky path under Turkey’s new social media law

Twitter faces a rocky path under Turkey’s new social media law
In this file photo taken on October 26, 2020 shows the logo of US social network Twitter displayed on the screen of a smartphone and a tablet in Toulouse, southern France. (AFP)
Updated 19 January 2021

Twitter faces a rocky path under Turkey’s new social media law

Twitter faces a rocky path under Turkey’s new social media law
  • YouTube, Twitter and Facebook have faced fines in previous months for not complying with the new law

ANKARA: Turkey’s advertising ban for social media platforms with more than 1 million daily users that have failed to establish a local representative office in the country came into force on Tuesday.

As of Jan. 19, nobody will be allowed to advertise on Twitter, its live-streaming app Periscope and image-sharing app Pinterest, leading to a substantial loss of revenue for these platforms.

Their bandwidth will also be reduced by half in April and by 90 percent in May, leading ultimately to a total blocking of access.

On Monday, Facebook announced that it would appoint a local representative in Turkey, in compliance with the country's draconian social media law that has been criticized as a powerful instrument of state censorship of online content.

Facebook said that it might withdraw its local representative if he or she faced political pressure.

Last month, YouTube decided to abide by the new law that gives Turkish authorities the opportunity to remove so-called “sensitive” content from social media platforms rather than blocking access.

YouTube, Twitter and Facebook have faced fines in previous months for not complying with the new law.

“Advertising on Twitter hasn’t been very popular among advertisers. However, especially for NGOs and political parties, advertising on Twitter was thought to be a meaningful device,” Sarphan Uzunoglu, a digital communications expert from Istanbul Bilgi University, told Arab News.

Uzunoglu thinks that rather than classical market actors, governmental and non-governmental actors will be affected by this new situation while campaigning.

The Turkish government considers foreign social media platforms bypassing local oversight an example of “digital fascism.”

The new social media law will expose users to the risk of arbitrary arrest and prosecution over their online posting as their private data can be handed over to Turkish authorities on request.

Right defenders have asked all international social media companies that established a local representative office in Turkey to tell their users how their right to freedom of expression will be guaranteed.

Compared to other platforms that complied with the new law, Twitter’s share in the advertising market is limited, Uzunoglu said.

“However, Twitter is the most political platform among them and it is intensely used by journalists who are under the government’s oppression on a regular basis. So Twitter, in the end, is a battlefield. I find their decision to resist for now so valuable,” he said.

In Turkey, where the mainstream media is almost completely owned by pro-government conglomerates, social media platforms have become a frequent source of information for citizens, who also share their views on political issues.

According to the latest Dimensions of Polarization in Turkey 2020 Survey conducted by the German Marshall Fund of the United States and Istanbul Bilgi University, online news portals (57 percent), as well as Facebook and Twitter (36 percent), have turned into the primary information sources for Turks.

“This law and its application with these fines and bans are problematic,” Kemal Kumkumoglu, a lawyer specialized in digital technologies, told Arab News.

“First of all, this law does not provide a democratic aim or proportionate measures. For example, the provision which allows removing user content could be considered an Orwellian tool since it offers government (a way) to create a digital environment free from discussions or criticisms about the government actors or institutions,” he said.

On the other hand, for Kumkumoglu, although it is a legitimate expectation on the government’s side to appoint local representatives for social media platforms for law enforcement and taxation purposes, the path that the government has been following endangers the fundamental rights of citizens.

“This commercial ban and the potential cut on bandwidth will affect the freedom of expression and freedom of trade of the large portion of the population who enjoy these rights mainly with these platforms,” he said.

Twitter released its Transparency Report in January, in which Turkey was ranked as the world leader in the categories of combined requests, court orders and other legal demands, accounts specified for closure, and accounts and tweets withheld.

Kumkumoglu considers the social media law and its gradual implementation on social media platforms a “double-edged sword.”

“It is true that the citizens should not be left alone concerning the digital problems they encounter. However, pushing citizens into social media platforms that are put under the constant pressure of huge fines is not an ideal solution. The rule of law requires addressing such issues with a systematic and democratic approach, which is unfortunately not the case in Turkey.”

On tweets withheld by Twitter, Turkey still tops the list with 12,135 tweets out of 28,542 tweets withheld in 2020. This means almost 42 percent of the tweets withheld globally by Twitter came from Turkey last year.