Amid ongoing debates regarding fair compensation in the music industry, a new dispute has emerged between Spotify and songwriters over royalty payments. According to a recent article by Bloomberg Law, Spotify’s latest changes to its royalty model have sparked significant controversy, casting a shadow over what had seemed to be a growing consensus around songwriter earnings.
Spotify’s decision to bundle audiobooks with music subscriptions has been particularly contentious. The National Music Publishers’ Association (NMPA) has filed a complaint with the Federal Trade Commission (FTC), alleging that this bundling practice has led to reduced royalty payments for songwriters. The NMPA claims that the inclusion of audiobooks dilutes the revenue pool available for music creators, effectively lowering their payouts.
Additionally, Spotify’s new royalty model, which introduces a minimum streaming threshold for earning royalties, has been met with mixed reactions. Under this model, tracks must reach 1.
Despite these challenges, Spotify reported paying a substantial $9 billion in royalties in 2023, with 1,250 artists each earning over $1 million in recording and publishing royalties. However, the overall impact of these policy changes on the broader community of songwriters remains a hotly debated issue.
More
- For more in-depth coverage, read the full article on Bloomberg Law.
- https://time.com/6988114/spotify-songwriters-ftc-complaint-royalties-audiobooks-bundle/
- https://www.billboard.com/pro/does-spotify-new-royalty-model-affect-songwriters/
- https://apnews.com/article/spotify-loud-clear-report-8ddab5a6e03f65233b0f9ed80eb99e0c
