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Music Business Worldwide

Spotify vs. Songwriters (again)... and a 'likely' legal fight

Apr 30, 2024
David Israelite, President and CEO of the National Music Publishers' Association, discusses Spotify's controversial decision to lower mechanical royalty rates for songwriters by reclassifying premium subscription tiers. The NMPA is considering legal action to challenge this move. The podcast delves into the impact on songwriters, concerns about transparency, and the ongoing conflicts between Spotify and music creators.
31:53

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Spotify reclassifying premium tiers as 'bundles' to lower royalty rates for songwriters in the US.
  • NMPA considering legal action against Spotify to challenge the newly-lowered 'bundle' mechanical royalty rate.

Deep dives

Spotify's Recategorization and Impact on Songwriters

Spotify's decision to classify its premium tiers as bundles has significant implications for songwriters and music publishers in the US. By reclassifying their premium accounts, Spotify aims to lower the royalty rates paid to writers and publishers. This move follows a history of disputes between the NMPA and Spotify over royalty rates, with Spotify attempting to pay less to songwriters. The shift to bundle services allows Spotify to pay writers based on a percentage of the portion of the subscription attributed to music rather than audiobooks, potentially reducing the earnings of music rights holders.

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