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.

  • HauntedCupcake@lemmy.worldEnglish
    21·
    8 months ago

    Totally agree, they’ll never go for that. I meant licensed as in that the media is being legally distributed. But they wouldn’t go for it as it would mean that customers might have an amount of ownership.

    The distinction is that the private tracker is legal to run, as you’d be paying the licence holder for the ability to torrent using their private tracker.

    I like the Audible idea of “you have X amount of GB a month that you can download, and you can pay more for more GB”. It gives the customer a reason to keep paying, and therefore allow the business to exist.

    Licence is probably the wrong word as I’m not anywhere near an expert on this