PROs Speak Out, Brazil Cracks Down on Streaming Fraud, and SoundExchange Reaches Royalty Deal
How The Music Business Works - Issue #8
April 24, 2025
Welcome back to How the Music Business Works!
This week’s headlines dive into some major developments shaping the future of rights management, streaming regulation, and global enforcement.
U.S. PROs have weighed in on the Copyright Office’s inquiry into collective licensing, while SoundExchange and NAB reached a Web VI settlement ahead of critical hearings. Meanwhile, the Internet Archive pushes back against a $700 million lawsuit from record labels, Brazilian authorities carry out their largest crackdown on streaming fraud, and new stats reveal YouTube Music’s dominant position in South Korea.
Let’s get into it.
ASCAP, BMI, GMR, and SESAC Have Their Say In US Copyright Office’s PRO Inquiry
In response to the U.S. Copyright Office’s inquiry into performance rights organizations (PROs), ASCAP, BMI, GMR, and SESAC submitted comments defending the existing licensing system and cautioning against further regulation. BMI pointed to transparency efforts like its public database and the Songview platform with ASCAP. ASCAP, the only not-for-profit PRO, argued that additional oversight could reduce royalty payouts and harm the efficiency of collective licensing. GMR and SESAC also responded, though their positions were not detailed. The inquiry comes amid significant changes in the PRO space, including GMR’s $3.3 billion acquisition and reports of a potential $3 billion+ sale of SESAC.
SoundExchange Confirms NAB Web VI Agreement Ahead of Hearings
On April 21, 2025, SoundExchange and the National Association of Broadcasters (NAB) announced a settlement agreement on Web VI royalty rates for non-interactive digital music services. This agreement was reached ahead of the scheduled hearings by the Copyright Royalty Board (CRB). While specific terms of the settlement were not disclosed, the agreement aims to provide clarity and stability for broadcasters and digital music services regarding royalty obligations. The settlement is expected to influence the CRB’s final determination on Web VI rates, which will impact the financial landscape for streaming services and rights holders in the coming years.
Internet Archive Wants Record Labels To Drop Lawsuit
On April 22, 2025, the Internet Archive launched an open letter urging major record labels to drop their $700 million lawsuit concerning the organization’s Great 78 Project, which aims to preserve and provide access to historical 78rpm records. The Archive argues that the lawsuit threatens not only these recordings but also the broader mission of preserving digital history, including services like the Wayback Machine. The open letter has garnered over 50,000 signatures on Change.org. This appeal comes shortly after both parties agreed to a 30-day pause in legal proceedings, citing “significant progress in settlement discussions.” The impact of this public campaign on ongoing negotiations remains to be seen.
Brazil Launches Operation To Disrupt Streaming Fraud
In April 2025, Brazilian authorities carried out their largest-ever operation against music streaming fraud, focusing on the global platform JustAnotherPanel. The platform enabled fake streams through a wide network of resellers, diverting revenue from legitimate artists. Led by São Paulo’s cybercrime unit, the operation shut down 43 illegal services in Brazil and impacted over 1,100 resellers internationally. The IFPI described it as the biggest action taken against streaming fraud, which costs the music industry an estimated $2 billion each year. Industry leaders stressed the importance of continued collaboration to protect artists and maintain trust in digital music systems.
Stats Show YouTube Music’s Lead Over Rivals In South Korea
YouTube is facing regulatory scrutiny in South Korea over concerns that bundling YouTube Music with Premium gives it an unfair edge over local services. Some context for that comes in a new report by the Korea Times using stats from research firm Wiseapp. It claims that YouTube Music had just over 9.5 million monthly active users in South Korea last month, well ahead of rivals Melon (6.4M), Spotify (3.3M) and Genie Music (2.6M). The report notes Melon and Genie’s efforts to differentiate themselves with, respectively, features for K-Pop superfans and a focus on in-car usage. YouTube may be unbundling its music service from its Premium subscription tier soon, which could shake up the South Korean market again.