Music News

U.S. music publishing revenue rose 17% to $7.04 billion in 2024, the National Music Publishers’ Association (NMPA) revealed at its annual meeting on Wednesday (June 11). Last year, the trade organization reported total revenue at $6.2 billion, which was up 10.71% from the previous year.
The event, held at Alice Tulley Hall at New York’s Lincoln Center, is considered a state-of-the-union for U.S. music publishers, and this year, its CEO/president, David Israelite, and general counsel, Danielle Aguirre, focused their presentation on both celebrating hitmakers — like award recipients Kacey Musgraves, Rhett Akins, Gracie Abrams and Aaron Dessner — and on talking about ways to grow revenue even more.

There was also a strong focus on calling on the industry, from executives to songwriters and artists, to stand together. As Israelite said, “We should all stand behind [songwriters]…There has never been a greater need to stand up for the value of songwriters.”

Trending on Billboard

Aguirre and Israelite pointed to three key battlegrounds where remuneration can improve if the industry sticks together: general licensing (licensing for bars, restaurants, venues, etc.); social media; and interactive streaming. As Aguirre noted, 72% of publishing income is under “burdensome regulations” in the U.S. — whether by consent decree or compulsory license — but there are still ways to improve that within the current system.

Interactive Streaming

For interactive streaming, Aguirre reminded the crowd that Phonorecords V proceedings at the Copyright Royalty Board (CRB), which will determine the rate that songwriters and publishers will be paid for U.S. mechanical royalties from 2028-2032, are “fast approaching” in the next six months.

“One of the biggest challenges [for interactive streaming income] continues to come from Spotify’s mischaracterization of its music service into bundles, which forced the conversion of over 44 million subscribers into bundled platforms that those subscribers did not request,” Aguirre said. (Earlier this year, the Mechanical Licensing Collective’s lawsuit against Spotify, which claimed the company’s bundling of premium tiers and resultant cutting of payments to songwriters and publishers was unlawful, was dismissed by a judge who said the rules were “unambiguous.” However, the NMPA continues to attack the platform through various means, including sending mass takedown notices for podcasts and videos on Spotify that do not properly license music.)

Aguirre revealed that in the first year of Spotify’s new bundling change alone, publishers and writers have lost over “$230 million…and these losses will continue if we can’t reverse or correct Spotify actions,” she said. “In fact, if we don’t stop them, we are projected to lose over $3.1 billion through the next CRB period [which ends in 2032].”

Perhaps taking a cue from Spotify, Amazon has also bundled its music service with other offerings, allowing it to cut royalty rates for songwriters and publishers in the U.S. — another change Aguirre hit on in her remarks. “In just the last three months, we’ve seen a 40% decrease in music revenue from Amazon, which has hit the PROs particularly hard,” she said. Notably, the NMPA had a much more hopeful outlook on the Amazon bundle when it was announced; at the time, the organization released a statement saying it was “optimistic” about Amazon’s new offering and had “engaged” with the company in a “respectful and productive way” to find a compensation model for publishers that “will not decrease revenue for songwriters.”

Social Media

Social media is one of the rare areas of publishing where publishers and songwriters can negotiate without any government interference — and the NMPA is hopeful about capitalizing on that. To date, the income stream is still small: Aguirre reported that social sites like TikTok, Instagram, X and others only make up 2% of income for publishers in the U.S.

However, Israelite believes songwriters have the power to say no to this level of compensation and force the companies to treat them better.

“It’s important for songwriters to understand they already have the power to strike,” he said, despite the fact that songwriters do not qualify for a traditional union. “They do so when the people they entrust to license their songs, the music publishers and collecting societies, say no. There are key industries, such as social media, user-generated content, artificial intelligence training and lyric rights, where songwriters have the power to say no. But too often, when a music publisher or a PRO stands up to licensees who don’t want to pay fair rates, we run into a unique problem that plagues the songwriting industry: Songwriters don’t stick together. This is a tough conversation.”

Case in point: Just last year, Universal Music Group removed its catalog from TikTok in an effort to fight for its “fair value.” However, as Billboard reported at the time, a number of artists, including Ariana Grande, Beyonce and Olivia Rodrigo, found ways around the ban to continue using the platform for marketing purposes.

General Licensing

The final area of focus the NMPA addressed at the meeting was general licensing, or the performance license required to play music in public spaces like restaurants, bars, venues and clubs. While Aguirre noted that this only made up for 5% of total revenue last year, she said that “there is a substantial opportunity for growth.”

“One concern is the lack of licensing from many of these venues. For the first time, we have insight into just how much money is being lost to unlicensed mid-sized venues,” said Aguirre. In a recent study, she said the NMPA found that 80% of “venues that have 50 or fewer locations but are large enough to require performance licenses…misuse consumer streaming services to provide that music.” Others, she added, are using business-to-business (B2B) music services that “are not obtaining all of the necessary rights for the services that they are offering. Some provide features like offline listening, interactive music experiences and on-demand streaming without securing appropriate mechanical licenses.”

To remedy this issue, the NMPA announced it’s sending six cease and desist letters to B2B music services that are allegedly not properly paying for music. The organization did not specify the names of these B2B vendors.

The NMPA’s attack on B2B music suppliers comes on the heels of the U.S. Copyright Office’s Notice of Inquiry regarding U.S. PROs, wrapping up its first comment period. While bars, restaurants, clubs and other public spaces license music from PROs to use in their venues, some recently complained about the PROs’ alleged “lack of transparency” and the fact that there’s been a so-called “proliferation” of new PROs in the market, complicating (and perhaps increasing the cost of) the licensing process. While most countries have just one, maybe two, PRO options for writers and publishers to join, the U.S. now has six: ASCAP, BMI, SESAC, GMR, AllTrack and PMR.

Overall Breakdown of Publishing Income Streams

As reported by the NMPA, the breakdown of income streams for U.S. publishers and songwriters is as follows:

Streaming services: 45%

Traditional sync: 8%

Radio: 8%

TV/Cable: 6%

Mass sync: 6%

General Licensing/Live: 5%

Social Media: 2%

Label: 2%

Sheet Music: 1%

Lyrics: 1%

Songwriters

It wasn’t all just business talk — this year’s meeting also celebrated songwriters. The honorees included Musgraves, who received the Songwriter Icon Award accompanied by a tribute from her friend, Leon Bridges, who performed the Musgraves-written song “Lonely Millionaire.” Musgraves also took the stage to perform “Architect” from her latest album, Deeper Well.

Akins received the Non-Performing Songwriter award this year, and the ceremony featured a special tribute from his son, country artist Thomas Rhett, who performed “I Lived It” (released by Blake Shelton) and “What’s Your Country Song,” which he wrote with his father.

Lastly, the NMPA showcased the winners of the Billboard Songwriter Awards. Those honors were originally set to be handed out at a separate NMPA/Billboard Grammy week event that was canceled due to the Los Angeles wildfires and rescheduled for the NMPA’s annual meeting. Abrams and Dessner, who received Breakthrough Songwriter of the Year and the Triple Threat Award, respectively, took the stage on Wednesday to perform “I Love You, I’m Sorry,” which they wrote together.