The exclusion of Irving Azoff’s Global Music Rights (GMR) from recent Phonorecords V negotiations represents a critical shift in how digital service providers and major publishers are shaping future mechanical royalty rates for non-streaming formats. By successfully moving GMR out of the process, Spotify and other DSPs have consolidated influence over the 2028–2032 rate structure, potentially limiting the aggressive bargaining power that the small-but-pugnacious rights holder typically brings to the table.
A Coalition Forms Without GMR
Major record labels, the National Music Publishers’ Association (NMPA), the Nashville Songwriters Association International (NSAI), the Music Artists Coalition, and the American Association of Independent Music (A2IM) have formally notified the Copyright Royalty Board (CRB) of a voluntary settlement proposal covering physical formats, ringtones, and permanent downloads. This agreement proposes maintaining the existing Phonorecords IV framework unchanged, with only annual inflation adjustments based on the Consumer Price Index applied for the 2028 through 2032 period.
The participant list for this proposal includes heavyweights from the label and publishing sectors alongside major DSPs such as Apple, Spotify, Pandora, Google, and Amazon. Despite this broad coalition, GMR was conspicuously absent. According to participant lists reviewed by Digital Music News, GMR was singled out and officially “withdrawn” from the process by the CRB’s phrasing.
The Motion to Knock Out GMR
The removal was not accidental but the result of a coordinated legal maneuver. While GMR attempted to join the negotiations, the NMPA and DSPs filed a specific motion to exclude the organization. An informant familiar with the proceedings stated plainly that the NMPA and DSPs filed a motion to “knock them out, and they were knocked out”.
This exclusion is significant because GMR, known for its hard-negotiating stance under Azoff, often challenges standard rate structures that other entities accept. With GMR removed, the remaining coalition can advance a settlement that preserves the current mechanical rate structure without facing the type of disruptive litigation or rate demands GMR frequently employs. The move ensures that the proposed settlement for non-streaming formats proceeds with a unified front, leaving the industry to focus on the more contentious streaming mechanicals in separate proceedings.
For radio programmers, labels, and songwriters, the immediate impact is a streamlined path toward a stable rate structure for physical and download formats, though the broader battle over streaming mechanicals and bundling practices remains unresolved. The CRB case 25-CRB-0013-PR officially covers the determination of rates and terms for phonorecords from 2028 to 2032, and GMR’s absence alters the dynamic of who holds the leverage in these final deliberations.
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