Spotify started in Germany without key license
Spotify has been stuck in painful negotiations with GEMA, Germany’s main music rights group, over how much it wants from the company for each song that gets played. While Spotify may well try to cut deals with the major labels, who all have a stake in the company, GEMA has remained steadfast with notoriously high rates compared with other collection societies. Spotify had been delaying its move into Germany because the startup apparently was so complicated that it simply launched its service for Germans without a contract with rights holders group GEMA. Harald Heker (GEMA president) said during the association’s annual press conference that negotiations with Spotify are still ongoing, with a final meeting scheduled for March 26. GEMA’s standard rates call for payments of up to 0.006 Euro per song played – an expensive proposition for any music service that offers up songs for free. Spotify says: “Spotify offers a legal service in Germany. We are in ongoing discussions with GEMA to formalise a long-term agreement. We are paying composers and lyricists in Germany, just as we pay composers and lyricists in all other countries in which we operate.”
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