Spotify to Pay Songwriters About $150 Million Less Next Year With Premium, Duo, Family Plan Changes
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Spotify will potentially pay songwriters about $150 million less in U.S. mechanical royalties next year after bundling its plans with audiobooks.

When Bloomberg reported that Spotify would be upping the cost of its premium subscription from $9.99 to $10.99, and including 15 hours of audiobooks per month in the U.S., the change sounded like a win for songwriters and publishers. Higher subscription prices typically equate to a bump in U.S. mechanical royalties — but not this time.

By adding audiobooks into Spotify’s premium tier, the streaming service now claims it qualifies to pay a discounted “bundle” rate to songwriters for premium streams, given Spotify now has to pay licensing for both books and music from the same price tag — which will only be a dollar higher than when music was the only premium offering. Additionally, Spotify will reclassify its duo and family subscription plans as bundles as well.

  • gila@lemm.eeEnglish
    81·
    8 months ago

    As an Apple hater; Apple Music. Cheaper, good cross-platform frontends, more equitable to artists (though by no means satisfactorily so), has a Wrapped equivalent (though who actually cares). Maybe Spotify added something it doesn’t have in the several years since I switched but, I doubt it