More news about the 800 pound gorillas (Spotify, Apple, and royalties)

I haven't talked about streaming services since earlier this month, but a new agreement is affecting all streaming services that do business in the U.S.

Royalty rates paid to songwriters in the US from on-demand subscription streaming will rise by 44% over the next five years following a landmark ruling in the market....

The ruling includes a significant increase in the overall percentage of revenue paid to songwriters from 10.5% to 15.1% over the next five years – the largest rate increase in CRB history.

There are other benefits - and drawbacks - for songwriters, as described here.

But what happens to the streaming services? Obviously they don't like the idea of paying more, but one service changed its...um, tune:

Amazon, Google, Pandora, and Spotify all argued against the new rates prior to the ruling. Those companies briefly had an ally in Apple, but Variety reports that it “broke ranks, conceding that the current royalty rate structure was ‘too complex’ and ‘economically unsound’ and advocating for “a single per-play rate that is the same for all services.”

Why was Apple more willing to agree to the reduced revenue? While the $50 billion that Apple is bringing back to the U.S. is a partial explanation, there's a more basic one.

Apple has a deeper toehold on the music industry thanks to iTunes. For all three tech companies, music is a side business that creates synergy with all of the other products they offer.

For Pandora and Spotify, music is the whole game.

So who is the 800 pound gorilla to whom I alluded in the title? Spotify? Apple? The RIAA? I don't know - I just wanted an excuse to post this video.