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Ben Vaughn, president/CEO of Warner Chappell Nashville, died on Thursday (Jan. 30). A cause of death was not disclosed. He was 49.
The much-beloved Vaughn, who was Billboard‘s Country Power Players executive of the year in 2020, joined Warner Chappell Nashville (WCN) in 2012 and was promoted to president in 2017, adding the role of CEO in 2019. The Belmont University alumnus was honored with Belmont’s Music City Milestone Award in 2015.
Warner Chappell Music co-chairs Guy Moot and Carianne Marshall released the following memo to Warner Chappell Music staffers that read in part, “It is with broken hearts that we share the unthinkable news that Ben Vaughn, President & CEO of Warner Chappell Nashville, passed away this morning. Our deepest condolences are with his family and many friends.”
Under Vaughn, WCN had consistently dominated the country music publishing market. In 2024, they were crowned ASCAP Country Music and BMI Publisher of the Year (for the fifth time) and marked their third consecutive quarter at No. 1 on Billboard’s Country Airplay publisher rankings. Apart from Q3 of 2022 to Q3 of 2023, Warner Chappell Nashville had held the quarterly top spot, dating back to the first quarter of 2017. In November 2019, ASCAP, BMI and SESAC all named WCN their country publisher of the year — only the third time a publishing company has been honored as such, and a first for WCN.
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Among the singer/songwriters Vaughn worked with were Thomas Rhett, Zach Bryan, Chris Stapleton, Riley Green, Warren Zeiders, Hunter Phelps, Bailey Zimmerman, Jessi Alexander, Liz Rose, Josh Phillips, Thomas Rhett, Nicolle Galyon and Randy Montana.
The father of three was extraordinarily passionate about songwriters, especially developing ones, and relished helping young singer/songwriters find their voice and their first record deal. “There’s so many people that want that record deal, so helping someone get to that spot is one of the hardest things in the music business,” Vaughn told Billboard in 2020. “So the job is to take away the nos and help that person get to a place where you get a yes.”
Tributes poured in quickly. Jon Platt, chairman/CEO of Sony Music Publishing, who worked with Vaughn at EMI and then brought him over to Warner Chappell in 2012, said in a statement, “I am deeply saddened by the passing of my friend Ben Vaughn, and united in grief with the entire songwriting community. Ben dedicated his life to songwriters. As an exceptional leader and mentor, he leaves an indelible mark on the music business. I extend my deepest condolences to his loved ones and all who were touched by his spirit. I feel privileged to have known Ben and shared a close relationship with him. He was the best of the best and I will miss him greatly.”
“Ben was warm, welcoming, and always someone that supported and elevated the American songwriter,” says Lucas Keller, president/founder of Milk & Honey. “The world will not be the same without him – this is a loss most cannot process today. We met 15 years ago on my first trip to Nashville when he was at EMI, and I’ll never forget him.”
“Our hearts are heavy today in learning about the passing of longtime ACM Board Member and former ACM Board Chair, and good friend to all of us, Ben Vaughn,” added Damon Whiteside, CEO of the Academy of Country Music. “Ben was a champion of the country music genre and strong advocate for songwriters and good songs. He served as board chair of the Academy in 2018 and was the first music publisher to serve as chairman in the Academy’s history, in addition to serving on the ACM Lifting Lives board. On behalf of the ACM Board, ACM Lifting Lives Board, and the ACM staff, we send our condolences to Ben’s family, friends, coworkers, and all of those who crossed his path and were lifted up by his passion. His memory will live on forever through the great music he made happen.”
Vaughn grew up in the tiny community of Sullivan, Ky., and comes from “a proud tradition of coal miners, teachers and mechanics,” he told Billboard. As a high school student, he got a job as a weekend DJ at country radio station WMSK-FM, which set him on a path to Nashville. “I would devour the vinyl and read all the publishing and writer credits,” he told Billboard. “I thought, ‘I want to go where these people are.’ ”
That led him to Nashville’s Belmont University and an internship at WCN in 1994 under then-executive vp Tim Wipperman, who taught Vaughn the intricacies of publishing. While there, he got to know producer Scott Hendricks, whose Big Tractor publishing company had a partnership with WCN. Hendricks was so impressed with Vaughn that he eventually asked him to run Big Tractor — while Vaughn was still a college student. “He said, ‘I’m going to give you six months to see how it goes, but if you quit school, I’ll fire you,’ ” recalls Vaughn.
Through the decades, Vaughn remained in wonderment of songwriters and the new worlds they created. “It is awe-inspiring how much talent it takes to create something out of nothing that literally can make the whole world sing,” he said. “The most sacred responsibility is to help connect writers’ dreams to their goals. The fact that as publishers we are trusted to hold that space for them is everything.”
Moot and Marshall’s full memo to WMG:
To everyone at WMG,
It is with broken hearts that we share the unthinkable news that Ben Vaughn, President & CEO of Warner Chappell Nashville, passed away this morning. Our deepest condolences are with his family and many friends.
Ben has led our Nashville team since 2012, and we know that many of you around the world got to know him over the years. Anyone who had the pleasure of working with him will be as shocked and saddened as we are.
First and foremost, Ben was an extraordinary human being. He met everyone with enthusiasm, warmth, and generosity. His smile was huge, and his sense of humor was infectious.
He was always a passionate advocate of songwriters and a topflight music publisher. The Nashville community has lost one of its greatest champions, and he will be profoundly missed by so many across our company and the entire industry.
We are planning to visit the Nashville team very soon and thank you all for helping support them through this awful tragedy.
With love,
Guy & Carianne
This is a developing story.
Heidi Montag’s 15-year-old dance-pop album Superficial has generated nearly $150,000 from streaming and digital sales since the MTV reality show star lost her home to the Pacific Palisades wildfire in Los Angeles in early January.
In the days following the destruction of the couple’s home on Jan. 7, Montag’s husband Spencer Pratt took to TikTok, sharing videos of the ashes and their children’s burned toys and asking viewers to stream wife Heidi’s music. Pratt later told Variety in a Jan. 17 article that he made a combined $24,000 from donations on TikTok, but he had no idea if they were making any money from her music.
His plea appears to be paying off. From Jan. 3 to Jan. 23, Montag’s 2010 album Superficial and its individual songs have generated $147,011.61 from streaming, digital album and song sales and publishing revenue, according to Billboard estimates based on data from Luminate.H
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This month, Montag made her first appearance on the Billboard Artist 100 chart, which ranks the most popular artists of the week, and Superficial and its songs landed on the Billboard 200, Top Album Sales, Top Dance Albums and Hot Dance/Pop Songs charts for the week of Jan. 25. Her appearance on those charts may translate into additional revenue for her new album Superficial 2, which the artist released last Friday (Jan. 24).
Montag has also benefitted from widespread support. TikTok launched a Heidi hub with a link to create content using a sped-up version of her song “I’ll Do It.” (TikTok says that, as of Jan. 28, there are more than 2.8 million creations using the track — both the original and sped-up remix.) The online marketing hub LinkTree paid for a billboard in Times Square with the message “Stream Superficial by Heidi Montag” and Montag appeared on Good Morning America, according to her TikTok posts.
The ramp-up in revenue has been swift. In the first week of January, Billboard estimates that the album produced $1,762.97. Following Montag and Pratt’s request, the album and songs produced $98,002.57 in the second week of January and $48,009.04 in the third week of January.
Digital album sales have contributed the greatest amount of revenue so far, generating revenues of $82,497.22, based on Billboard estimates.
In the first week 2025, nine digital copies of the album were sold, worth about $50. In the second week of 2025, 11,258 digital copies of the album were sold, worth about $62,930; and in the third week of 2025, 3,484 digital copies of the album were sold, worth about $19,475.
Montag and Pratt did not respond to requests for comment made to their publicists.
Additional reporting by Ed Christman.
SiriusXM reported revenue from subscribers fell by nearly 4%, while ad revenue held flat for the full year in 2024, as the satellite radio company’s nascent streaming app failed to jump-start its subscribers as hoped.
The company generated $8.7 billion in revenue and adjusted EBITDA of $2.73 billion last year, representing declines of 3% and 2% respectively from 2023 figures. Subscriber revenue declines were the biggest contributing factor to the ho-hum year, but it was partially offset by the company lowering costs by cutting marketing, business expenses and staff.
“At the end of 2024, we took significant steps to refocus on SiriusXM’s core strengths and enhance operational efficiency,” Sirius Chief Executive Officer Jennifer Witz said in a statement. “By prioritizing our core in-car subscription business, leveraging our streaming capabilities, and growing our leadership in ad-supported audio, we are well-positioned to deliver long-term value. Looking ahead, we are energized by the opportunities to build on this strategy and continue offering unparalleled audio experiences through our platforms.”
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SiriusXM announced in December that was shifting marketing and other resources away from the streaming app it launche in Dec. 2023 to prioritize its subscribers who pay to listen to its music, sports and news radio and podcasts in vehicles.
Sirius is the dominant provider of audio entertainment subscriptions in vehicles in the U.S. but concerns over softening subscriber revenue and an eagerness to attract more younger subscribers pushed the launch of a streaming app last December.
The company met its 2024 financial targets–adjusted EBITDA of $2.73 billion and a margin of 31%–but its executives were peppered by questions about disappointing advertising revenue and internal guidance that 2025 will see sharper declines in adjusted EBITDA than they saw in 2024.
The company has a complicated business model, part of which hinges on customers choosing to start paying for their service after first trying a free trial subscription. Witz told analysts on their earnings call they expect to stabilize conversion rates this year for certain product lines like its 360L, a new premium in-vehicle audio platform with more channels. That said, she advised the number of net new subscribers in 2025 is again expected to decline.
The company said it is expecting $8.5 billion in total revenue in 2025, with $1.15 billion in free cash flow and $2.6 billion in adjusted EBITDA.
Here are the main take-aways from SiriusXM’s fourth quarter and annual earnings report:
The SiriusXM segment of the overall company–which doesn’t include Pandora–reported 2024 revenue of $6.6 billion, down 4% from 2023. The decline was driven by lower susbcriber, equipment and other revenue and a smaller average base of self-pay subscribers.
Average revenue per user in 2024 of $15.21 fell 35 cents from the prior year because of declining ad revenue, lower rates the company gets paid from automakers to offer promotional plans in their cars, and more people subscribing only for the streaming app, which has a lower price than the in-car subscription.
SiriusXM self-pay subscribers fell by 296,000 in 2024. The company had 33 million total subscribers as of Dec. 31, 2024.
SiriusXM gross profit totaled $3.9 billion in 2024, 6% lower than 2023, but with a gross margin of 60%, roughly flat from 2023.
Pandora and Off-platform self-pay subscribers decreased by 101,000 in the fourth quarter to end the year at 5.8 million in total.
Pandora and off-platform revenue totaled $2.15 billion in 2024, up 2% from 2023, helped by increased revenues from subscribers, advertising, podcasting and programmatic sales.
Mike Chester has been promoted to general manager of Warner Records, expanding his responsibilities to include digital and viral marketing, as well as artist development, while continuing to oversee promotion and commerce.
Based in Los Angeles, Chester reports to co-chairman & COO Tom Corson and works closely with label CEO & co-chairman Aaron Bay-Schuck on company goals and artist release strategies.
Chester joined Warner in 2018 as executive vp of promotion, later adding commerce to his title in 2021. His leadership has been instrumental in Warner Records’ revitalization, earning him recognition as Billboard‘s Executive of the Week following a barrage of midyear wins in 2024.
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Before Warner, he served as senior vp at Scooter Braun’s SB Projects, working with Justin Bieber and Ariana Grande, and spent over a decade at Def Jam Recordings. He began his career at Arista Records before moving to Atlantic and then Def Jam in 2004.
Corson and Bay-Schuck praised Chester’s leadership, artist relations expertise, and strategic vision, crediting him with playing a key role in Warner’s resurgence.
“He possesses extraordinary leadership qualities, has excellent artist relations skills, and knows how to balance all with confidence, compassion, and integrity,” they said. “He is an invaluable member of our senior management team and we know he will continue to thrive and innovate in his new role.”
Chester also shared his excitement about the new role, emphasizing Warner’s dedication to artist development and innovation.
“The team here at Warner is phenomenal, and our artist roster – from emerging talent to superstars – is second to none,” he said. “We pride ourselves on being the premiere artist development label, and we constantly discover new avenues in which to bring even more music to fans. I’m excited to continue promoting, innovating, and building careers in this dynamic and rapidly expanding musical environment.”
While the Los Angeles wildfires have all but silenced the many parties and performances that were slated to precede the Feb. 2 Grammy Awards ceremony, legendary record man Clive Davis says his annual pre-Grammy gala — which he is calling his 50th — will still take place on Feb. 1, this time for a cause greater than celebrating the music industry.
“Seeing the ongoing devastation that has been caused by the wildfires in Los Angeles, we feel strongly that the pre-Grammy gala should be a fundraising event to provide needed funds for all those affected, including many in the music community,” Davis says. “We are working closely with our longtime partners at the Recording Academy and will help support their MusiCares Los Angeles Fire Relief effort through fundraising at our event. We want to ensure that the evening will not only be a memorable night of music but will also provide impactful support for those very much in need.”
A week before Davis, 93, made the decision to convert the gala into a philanthropic event, he spoke to Billboard about its origins in 1976 and some of the more memorable experiences he’s had at his soiree — which he calls “one of the most exciting aspects of my life” — over the last five decades. One of Grammy Week’s most coveted invitations, the gathering attracts a cross-section of celebrity that in previous years has included former Speaker of the House Nancy Pelosi, Kim Kardashian, Caitlyn Jenner, Beck, Serena Williams, Tom Hanks, Meryl Streep, Dave Grohl, St. Vincent, Quincy Jones, Clarence Avant, Dua Lipa, Kareem Abdul-Jabbar and “Weird Al” Yankovic. They come to mingle and watch musical performances by an unannounced lineup of acts that have included Whitney Houston, Dionne Warwick, Lainey Wilson, Jelly Roll, Gladys Knight and Green Day, to name just a few.
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Clive Davis and Whitney Houston onstage at the 2011 event
Lester Cohen/WireImage
Davis says a documentary about the gala’s history by producers Jesse Collins and Rob Ford is in the works and will include never-before-seen footage from the event over the years.
Now that invitations have gone out, what kind of response are you getting in light of the fires?
The response is the strongest ever. But beyond that, the paramount concern is safety, health and getting out of this disaster.
Your first gala was in 1976. What led to your decision to throw a party?
I started Arista. Obviously, you can only hope that your first record goes straight to the top of the charts, and that’s what happened [with Barry Manilow’s “Mandy”]. Barry then gets two Grammy nominations. He comes to me and says, “Where’s our party? Every label has a party the night of the Grammys.” I said, “You’re right, but Barry, we just formed. At best we’ll have one table at Chasen’s.”
I thought, “I’ve got to come up with a different idea.” I decided to have our party the day before the Grammys. I invited everybody, and Stevie Wonder showed up, Elton John showed up and John Denver showed up. I said to myself, “My God, I think I’ve landed on a really compelling idea to celebrate the night before.” And that began the tradition.
Barry Manilow (left) and Clive Davis at the 2016 Pre-Grammy Gala and Salute to Industry Icons.
Lester Cohen/WireImage
The evening always includes a budding star and at least one classic performer who blows the audience away. Where did that idea come from?
In 2001, for the first time, I was going to introduce a best new artist category, and I told Alicia Keys, “I’ve got good news and bad news. I’m going to invite you to sing ‘Fallin’ ’ at my party.” This was before she broke. She said, “What could be the bad news?” I said, “Well, right before I introduce you, Angie Stone and Gladys Knight [are] singing ‘Neither One of Us,’ and I can’t let Gladys leave the stage without singing ‘Midnight Train to Georgia.’ ” I love that one of the great old-time performances will be followed by the introduction of a brand-new artist.
Will the 50th anniversary be reflected in the party?
There will be elements. We have some great performers who will show why over the 50-year period this evening is so unique.
You will present Universal Music Publishing Group chairman/CEO Jody Gerson with the Industry Icon Award. Does she choose any of the performers?
Yes, she’ll have one performer sing in her honor.
If you could only pick one favorite memory from the gala, what would it be?
At the height of Arista Records, there was a short-lived attempt to stop my earning capacity, which had been very considerable. I had to leave Arista and form J Records, which would mean I would no longer be working with Whitney Houston or Santana 30 years after signing him initially. That was the only year [2000] I had only two artists perform: Santana on the birth of Supernatural [the massive hit album Arista released in 1999] and Whitney Houston. The emotion I felt with her singing “I Believe in You and Me” and “I Will Always Love You” to me can never be duplicated.
Have you thought that 50 years is a good number to step away from the party on a high note?
We’ll deal with the future afterward. This evening is my paramount consideration.
Carlos Santana and Alicia Keys onstage at the 2005 gala.
Kevin Mazur/WireImage
SYDNEY, Australia — Various Artists Management is now open for business in the land Down Under.
As VAM builds out its international footprint, the company establishes an office in Sydney. Leading the new affiliate is industry veteran Arwen Hunt, VAM’s head of Australia/New Zealand, with duties across the talent agency’s management, label and publishing activities. Hunt reports to CEO David Bianchi.
With the launch, VAM’s empire includes offices in London, Los Angeles and now Australia’s most populous city.
“After the successful opening of our L.A. office a few years back we decided upon further global expansions and Australia/New Zealand seemed like a logical next step, both in terms of the amount of business we have down there and its proximity and access to Asia,” comments Bianchi.
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In Hunt, VAM lands a talented international executive with a stellar CV.
Born in the U.K., Hunt entered the music industry as a 17-year-old and has soaked-up experience as an artist manager, A&R, music publisher, label manager, product manager and promoter.
“It took one meeting with Arwen to know that she was the person to run Various in Australia/New Zealand,” explains Bianchi. “Her management background with Catfish and the Bottlemen and Kate Nash was super-impressive. Mixed with her publishing background at Universal she is just perfect! We are so happy to welcome her to the global VAM Family”.
Most recently, Hunt served as vice president, creative / head of A&R for Universal Music Publishing Group Australia and New Zealand, signing and A&Ring such artists and writers such as PJ Harding, Ruel, Lime Cordiale, Idris Elba, DMA’S, Odette, Timmy Trumpet, Alex the Astronaut, Guy Sebastian, Jessica Mauboy, Gang of Youths, Vera Blue, The Chats, Styalz Fuego, Hiatus Kaiyote, CW Stoneking, D.N.A. and others.
Previously, she was as an artist manager and partner at ATC London, where she guided the careers of Catfish and the Bottlemen, Kate Nash, Augustines, Half Moon Run, Black Lips (U.K. & Europe), Tegan and Sara (U.K. & Europe), and more.
“If you’re lucky enough to find your tribe in this often brutal industry, you find a way to work together. That’s exactly what happened when I first sat down with the VAM team, and now, here we are,” Hunt comments in a statement, issued Jan. 30.
VAM’s team “not only have a knack for identifying incredible musical talent,” she continues, “they’re also astonishingly adept at handpicking the right people to grow VAM and the careers of their artists and writers.”
The team culture is “one that inspires and excites me more than any other I’ve encountered in my lifelong career, and exactly what working in music should be about: a shared vision and exuberant passion and belief in the art they represent; an incessant drive to kick down doors for their artists, clearing the path for them so they can progress; a team that fights together, grows together, celebrate wins together, and inspires and supports each other.”
The VAM roster includes Tom Grennan, Good Neighbours, Melanie C, Ashnikko, The Libertines, Supergrass, La Roux and Rose Gray.
Esha Tewari is taking the next big step in her career. The rising singer-songwriter has officially signed with Warner Music in collaboration with Atlantic Records, setting the stage for a massive year ahead.
The deal, announced today (Jan. 30), marks a pivotal moment for Tewari, who built an impressive following through TikTok and streaming platforms.
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“I am super excited to welcome Esha Tewari to the Warner Music family and to be working with Atlantic Records to take her music to a global audience,” Rosen said. “Esha is an incredible talent with a unique ability to connect with her fans through her songs, and I can’t wait to work with her to amplify her music and her authentic storytelling to every corner of the world.”
For Tewari, the decision to sign with Warner wasn’t just about major-label backing—it was about finding a team that aligned with her fiercely independent vision.
“I’m so excited to be a part of the Warner Music family,” Tewari comments in a statement. “From LA to New York, we met with executives who spoke about an evolving label system that now gives artists more ownership and control. Warner stood out as their actions matched their words.”
She continues, “Especially this early in my career, the deal I have done with Warner Music gives me the ability to remain hands-on with the whole creative vision, and allows me to remain the leader of my now expanded team.”
Tewari first started making waves in February 2024 by posting covers and original songs on TikTok, quickly amassing a loyal fanbase she calls “Tewarians.”
Her independently released single “Beautiful Boy” went viral, catapulting her to over 601,000 monthly Spotify listeners, 217,000 Instagram followers, and 172,000 TikTok followers.
Her success continued with the release of two EPs—i can and Better Off—which helped establish her indie-folk sound. Now, she’s gearing up for her third EP, led by the heartfelt new single “You Were Mine,” which has already racked up 17,000 TikTok creations using the original sound.
With her career gaining momentum, Tewari is preparing for a North American tour in mid-2025, but first, she’s returning to Australian stages this April and May for her second national headline tour.
If the demand is anything to go by, she’s becoming a serious live force—Sydney, Brisbane, Melbourne, and Perth have already sold out, prompting a second show in Perth, while Adelaide is nearing capacity. It follows her completely sold-out Australian tour in November 2024.
Amazon informed customers on Wednesday (Jan. 29) that the prices for Amazon Music Unlimited, the company’s on-demand music streaming service, are increasing in the U.S., U.K. and Canada. In the U.S., the individual plan will rise to $11.99 per month from $10.99 per month, according to a company spokesperson. For Prime members, the monthly cost […]
Red-hot Latin upstart FloyyMenor has signed with Independent Artist Group for booking. The signing follows the huge success of the 19-year-old Chilean singer-songwriter’s reggaeton hit “Gata Only” with Cris MJ, which was named TikTok’s Global Song of the Summer and Global Song of the Year in 2024. According to a press release, the track saw 50 million creations on TikTok, […]
On Sunday (Jan. 26), news broke that Universal Music Group and Spotify had struck a direct deal affecting both the company’s recorded music and publishing royalty payments. The recorded music side of the deal marked an important step forward in UMG’s so-called “Streaming 2.0” plan, but the publishing side of it is even more noteworthy.
This agreement represented the first direct deal between a music publisher and Spotify since the passage of the Music Modernization Act in 2019, and it effectively overrides the government-regulated statutory rate for mechanical royalties in the U.S. with a private deal between the two companies. While the jointly issued press release about it was vague on details, sources close to the deal say it offers better pay to UMPG and its songwriters than before, and it signals that Spotify might be ready to bury the hatchet with U.S. publishers overall. But it’s not over yet.
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First, the context: In March 2024, Spotify added audiobooks to its platform and reclassified its premium, duo and family subscription tiers as “bundles” in the U.S., a classification streamers can use to pay discounted mechanical royalty rates for musical works. This means that Spotify started splitting the money it once only paid to U.S. music rights holders to pay for both music and books, leading to a sudden and dramatic drop in mechanical streaming royalties. (At the time, Billboard estimated a decrease of $150 million in U.S. mechanical royalties for songwriters and publishers over the first 12 months of the new classification, compared to what they would have made had the tiers never been reclassified.)
This led to a nearly year-long war between the publishers and Spotify, led vigorously by the National Music Publishers’ Association (NMPA), which launched a multi-pronged retaliation against Spotify. In the months that followed, the NMPA sent Spotify cease and desist notices for podcast and video content on its platform that were allegedly infringing on music IP; submitted a legislative proposal, asking for the overhaul of the statutory license; sent complaints to the FTC and nine state attorneys general; and more. The Mechanical Licensing Collective jumped in too, suing Spotify in May for allegedly “unlawfully” changing its subscriptions to bundles.
Then, in a surprisingly-timed announcement, the MLC’s lawsuit against Spotify was dismissed this morning (Jan. 29) with a federal judge saying that Spotify’s move to bundling was supported by “unambiguous” regulations. This timing was good for Spotify. Had the ruling come down before the direct deal with UMPG, the outcry from publishers about it would have been far worse (not to say there won’t still be some outcry). The judge is not giving the MLC a chance to refile the case, saying the law is clear and that amending the accusations would be futile, although the MLC can challenge the ruling at the federal appeals court.
But since this ruling came after the UMPG news became public, publishers now have hope for another way out of the Spotify bundle: direct deals. Although sources close to the situation say they are not aware of any other negotiations going on between Spotify and other publishers to date, the other major publishers now have precedence to argue for similar deals with Spotify. The bigger question is what happens to the small indie players. Will they be subjected to the original bundle rate while the majors get better terms? Does this further the monetary divide between indie and major publishers? UMG is the world’s largest music company and the world’s second largest publisher, after all. Not everyone has that kind of leverage.
The NMPA told Billboard at the time of the UMG-Spotify deal that it was not making any changes to the moves it had already set in motion against Spotify — and neither was the MLC. (Of course, this all came before the MLC’s lawsuit was dismissed.) The NMPA struck a somewhat hopeful tone in a statement about the UMG-Spotify deal, saying it was “good news for the entire industry” and that “a rising tide lifts all boats, and this signals that Spotify is coming back to the table.”
The question remains, however, why Spotify came back to the table with UMG for a new publishing deal in the first place. Spotify had found a way to pay less for songs. Why did Spotify make this concession?
There are a few possible answers to that. For starters, the NMPA had essentially promised that, until Spotify relented on bundling, it would make any future moves the streamer wanted to make difficult. The NMPA’s cease and desist letter cited a Wall Street Journal report that Spotify eventually wanted to offer a “remix” feature to speed up, mash up and otherwise edit sound recordings; the NMPA warned that if Spotify released “any such feature … without the proper licenses in place from our members” it “may constitute additional direct infringement.” Given the NMPA’s overall tone throughout this letter, it seems clear that this was a warning to Spotify that it needed publishers’ cooperation for remix features.
Spotify has also teased other features that would require the platform to get new, voluntary licensing approval from the publishers. In October, Spotify began hosting music videos in 97 countries — but, notably, not in the United States. In November, Spotify CEO Daniel Ek teased the idea of a higher cost ultra-premium tier, including more offerings for top fans such as high fidelity listening and, vaguely, “a bunch of other things.” A few weeks ago, Spotify partnered with The Weeknd to stream his Billions Club Live show exclusively on the platform. By developing a solution with UMPG, and maybe other publishers in the future, Spotify is signaling that it is ready to make nice so that it can push forward with its plans for new products.
It also must be noted that all of these publishing companies, as well as Spotify, are global.
While the bundling situation is specific to the United States, UMPG and other publishers are negotiating with Spotify for licensing deals in multiple markets worldwide where publishers have room to negotiate. With UMG’s direct deal, UMPG and Spotify can move forward with their plans to grow their income and presence in emerging markets — something both Spotify and UMG shareholders are keen on — without wasting time and resources threatening each other in every new licensing conversation.
It turns out that playing nice is helpful for both parties — and the market is rewarding that. Since the announcement of their new direct deal, the share price of both companies saw a positive bump. Even Warner Music Group saw upward movement, since some analysts believe the UMG deal opens the door for other major music companies to do the same.
Though it constitutes a step in the right direction, only time will tell how, and if, other direct deals between Spotify and publishers develop, and if this might grow the chasm between majors and indies.