State Champ Radio NMPA
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Spotify and the National Music Publishers’ Association (NMPA) have joined forces to create a new opt-in license for NMPA members to enter into a direct license agreement for “expanded audiovisual rights” in the U.S., according to a press release about the deal. NMPA members can sign up using a portal, and the deal is said to increase the royalty-earning potential of participating publishers and writers by offering them a new audiovisual royalty stream.
News of the deal comes during a time of great tension between Spotify and the NMPA. In March 2024, Spotify began paying music publishers and songwriters a discounted royalty rate for streams on its premium tiers. Spotify explained that by adding audiobooks to its premium offerings, these subscriptions could be reclassified as “bundles,” a type of plan that qualifies for a discounted rate on U.S. mechanical royalties, given that multiple products are offered under one price tag.
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The NMPA and its allies have fought this assertion ever since, spearheading a multi-faceted attack against Spotify soon after. This included the Mechanical Licensing Collective filing a lawsuit against Spotify over the matter, and the NMPA filing a legislative proposal, an FTC complaint and cease-and-desist notices over allegedly hosting lyrics, videos and podcast content that contained their members’ copyrighted works without proper licenses.
This deal, at least, potentially creates a pathway for any alleged unlicensed videos on Spotify to become licensed. According to a source close to the deal, the NMPA does not plan to back down from its other pushes against Spotify, given that this deal does not address bundling.
News of the agreement comes after a series of announcements from NMPA members — including Universal Music Publishing Group, Sony Music Publishing, Warner Chappell Music, Kobalt and their parent companies — each of which came to direct deals with Spotify throughout 2025. Little is known about the nature of the deals beyond what is disclosed in the press release, but each was said to improve remuneration for songwriters and offer multi-year agreements for the companies, often covering both publishing and recorded music.
“This new partnership with the NMPA will increase revenue for songwriters and independent publishers who are the heart of the industry,” says Alex Norström, co-president and chief business officer, Spotify. “We look forward to continuing to work with the NMPA to create new value and opportunities for their members.”
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“We are pleased that this deal offers indie publishers the chance to enter into direct deals with Spotify in regard to audiovisual streaming functionality on the platform alongside the recently announced larger publishing companies,” says David Israelite, president and CEO, NMPA. “This new income stream reflects the growing value of songs as digital platforms offer new capabilities to consumers.”
The NMPA Opt-In Portal is open to eligible publishers beginning today, Nov. 11, with onboarding continuing through Dec. 19.
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Irving Azoff recently slammed YouTube as “by far the worst offender” when it comes to paying creators fairly. As one of the largest and most successful managers of artists in history, his opinion carries a great deal of weight.
Songwriters specifically are paid through a complex, regulated environment, so digital services have myriad ways of manipulating the system. Those who care about creators often hear about how these platforms mistreat them — and if you ask 10 industry leaders who is the worst, you might get 10 different answers.
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To make sense of who is friend or foe, here is a ranking based on what they’re doing for and against songwriters today. Beyond their public relations and industry parties, it is essential to understand how these services actually treat the creators they depend on*,* so here are the broad criticisms.
One must start with Spotify, the largest music-focused streaming service. While Mr. Azoff ranks YouTube as enemy number one, when it comes to songwriters, no one comes close to Spotify.
Last year, the streaming giant revealed — months after imposing the scheme — that it had unilaterally added audiobooks to premium subscriptions so that it could attempt to qualify for paying a lower royalty rate — since music was now part of a “bundle.”
This scheme is currently being challenged in court by the Mechanical Licensing Collective (MLC), which pays streaming royalties to rights holders. The NMPA has also pushed for a Federal Trade Commission (FTC) investigation into this as an unfair business practice, as once Spotify imposed this bundle on its users, it raised prices and made it virtually impossible to return to a music-only premium plan.
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Spotify also has fought for extremely low royalty rates at the trial that determines streaming royalties, which takes place every five years in Washington, D.C. And when we, alongside NSAI, won a significant royalty increase in 2018, Spotify spent years appealing that decision. Eventually, they lost that appeal — but songwriters were denied much-needed income throughout the process. Justice delayed is justice denied.
The platform also has added insult to injury through tone-deaf PR stunts like its “Secret Genius” campaign — honoring the very songwriters whose genius is no secret — while it simultaneously fought them in court.
Another significant swipe at songwriters is its free service. Instead of being a free trial period or an on-ramp to encouraging users to pay for music, millions of users can listen to unlimited songs for free without ever signing up. This service delivers the most minuscule royalties to songwriters — it’s almost incalculable.
Mr. Azoff’s opinion about YouTube is shared by many in the industry. The service is notorious for using hardball tactics in negotiations. Since the YouTube platform largely involves synchronization (video) royalties — which are in a free market for songwriters — there is even more opportunity cost. The general perception for years has been that YouTube benefits much more from the music on its service than it pays.
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Amazon is complex in that music is only part of its much larger ecosystem. Unfortunately, it has also recently taken advantage of lower rates by bundling music with other services. However, it has not been as brazen as Spotify and has generally been more concerned with its relationship with songwriters. There are opportunities for the platform to improve, and we are hopeful that it continues to keep conversations open with the end goal of seeing music creators as business partners instead of pawns.
TikTok leads the world in social media music consumption — it is essential to the platform’s success. While deals have been struck in the past, the service has used its size to pressure songwriters and artists to return to the platform when there were attempts to negotiate fairer rates. Songwriters suffer disproportionately from this dynamic. While artists receive exposure on the service that can be monetized through touring and merchandise, songwriters need direct compensation, so holding out for more is essential, and thus far has been largely unsuccessful.
Apple Music continues to stand alone in several areas. When other services appealed the aforementioned royalty rate increase in 2018, Apple did not. Additionally, as Apple Music head Oliver Schusser announced at our Annual Meeting in Manhattan earlier this year, the platform will never give music away. “I think it’s crazy that 20 years in, we still offer music for free,” Schusser said. “We’re the only service that doesn’t have a free service. As a company, we look at music as art, and we would never want to give away art for free.” While we will still push for higher rates from Apple, this sentiment must be appreciated and amplified.
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Satellite radio shouldn’t be counted out. SiriusXM — which now owns Pandora — has a troubling history of paying extremely low rates to songwriters. In fact, today digital radio pays significantly more to artists annually than AM/FM radio pays songwriters. Think about that. The radio relationship has completely flipped. Songwriters used to make a large percentage of their income from terrestrial radio, and now they make less than artists make from satellite radio — which is dwarfed by interactive streaming — alone.
So who is the worst offender? The answer depends on who is in a current contract negotiation or a rate-setting proceeding. However, when entering into any of these marketplace or regulatory environments, it is crucial to understand where the players stand and how they have historically positioned themselves.
The Super Bowl of all of this starts in a few months before the Copyright Royalty Board in Washington, D.C. At that time, the major streaming services will put forth their proposals for how they want to pay songwriters for 2028–2032. This will be illuminating, and all creators and advocates must seriously consider what they put forth. We will make sure songwriters know what they propose.
There is an opportunity for digital platforms to make serious headway in terms of their relationships with songwriters at this proceeding. So pay close attention, and we will adjust rankings after they reveal their positions. Stay tuned.
David Israelite is the president and CEO of the National Music Publishers’ Association (NMPA). Founded in 1917, NMPA is the trade association representing all American music publishers and their songwriting partners.
It has been over one year since Spotify brought limited audiobook functionality to its Spotify premium products in November 2023. In March 2024, in a major shift for songwriters and music publishers, Spotify began reporting its three principal premium subscription tiers to the Mechanical Licensing Collective (MLC) as “bundled subscription services” rather than as “standalone portable subscriptions,” as they had previously done. In response, the MLC sued Spotify in May 2024 for allegedly underpaying music publishers, but a judge dismissed the case in January 2025. A motion for reconsideration filed by the MLC in February 2025 remains pending in the Southern District of New York.
Earlier this month, the National Music Publishers’ Association (NMPA) stated at its annual meeting that this change has resulted in a first-year loss of $230 million in mechanical royalties to songwriters and music publishers. Spotify’s own recent SEC filing states a loss of 205 million euros in mechanical royalties for the 13-month period between March 1, 2024, and March 31, 2025. This is actual money that should have, but did not, make it into the pockets of songwriters and music publishers. It has instead remained with Spotify.
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Spotify’s actions have already been publicly lambasted by this author, the NMPA and the songwriter and music publisher communities as perhaps the worst affront in a long line of offenses committed by Spotify against songwriters. So why am I writing about this issue again, a year after first doing so in Billboard? Because with a year’s worth of additional facts and data at hand, it is my opinion that this is one of the greatest injustices visited upon songwriters in the era of music streaming, sadly perpetuated by the company that has perhaps benefited more than any other from the creativity and labor of songwriters. All songwriters and music publishers should be aware of this critical issue and deserve to know all of the supporting facts.
When I wrote on this issue back in May 2024, I opined that Spotify’s actions would likely reduce the effective share of its U.S. subscription revenue paid to songwriters and music publishers from the agreed-upon 15.1% to 15.35% in the Phonorecords IV settlement to less than 12%. I wrote that Spotify’s timing felt engineered to partially sideline songwriters and music publishers from benefiting from price increases that were reportedly soon to take effect (and did). I wrote that the Spotify Audiobooks Access tier was seemingly not commercially viable as a standalone product and was launched in the U.S. (and nowhere else) with the primary and perhaps sole purpose of supporting Spotify’s attempt to report most of its subscription tiers to the MLC as bundles and reduce mechanical royalty payments to songwriters. And finally, I wrote that Spotify was motivated to take publishing royalties out of the pockets of songwriters in order to improve its gross margin and offset the costs of running its new audiobook initiative.
One year later, I believe that all of this has proved to be true. Let’s look at the facts.
What is a bundle?
In this context, a bundle occurs when Spotify — or another music service — is sold to consumers for a single price as part of a package which includes other goods and services. Some bundles package music with digital services such as subscription video on demand and/or physical goods such as phones, tablets and delivery services. The components of the bundle typically can be purchased on an individual basis if a consumer is not interested in purchasing the entire package, and those components typically have a clear independent commercial value to some segment of consumers.
For rightsholders, the potential value exchange is that a tech platform may package a bundle of goods and services (including music) together in a manner that could potentially bring additive revenue, users and engagement to music creators that, absent the bundle, might be less obtainable. Basically, the platform is offering a package deal to reach customers who may be less likely to pay for a music service sold on its own.
Rightsholders operating in a free market may be asked by the licensee to help offset their other costs of operating such a bundle (e.g., non-music licensing costs, other operating expenses) by agreeing to reduced royalty terms than what would typically apply to a standalone music service, which a licensee may also offer. Rightsholders are able to consider such requests, sometimes referred to as “bundle discounts,” by engaging in discussions with the licensee and utilizing pertinent data and information such as market research, reporting and revenue forecasts to inform their viewpoints and make decisions that are in the best interests of music creators.
A range of outcomes is possible in the free market. A rightsholder may refuse to license the bundled service at all, or they may license the bundled service for the same price and terms they’d grant to a standalone music service, or they may agree to some means of discounting. The Phonorecords IV settlement includes examples of such terms, including a specific definition of revenue for bundled services and other terms that are reduced relative to those that apply to standalone music services.
When this works as intended, music rightsholders may choose to effectively co-invest with a streaming service in creating a discounted bundle that they feel has the potential to earn additional revenue, even if there may be less revenue earned on a per-user basis from the bundle relative to a standalone music service. The potential benefit to music creators is that they may capture additional royalty amounts from users who might not have signed up for a music service absent the additional non-music components of the bundled offerings. The licensee is rewarded for bringing some level of added value to music creators by building, offering and marketing the bundled package to consumers.
Why Spotify’s bundle is different
But this is not what Spotify has done. Spotify has built a music subscription empire based upon the creativity and labor of songwriters and now reduced their U.S. mechanical royalties in a manner that implies that songwriters now contribute less to the success of Spotify. That could not be further from the truth. Regardless of the legal issues surrounding this matter, Spotify’s reduction of songwriters’ mechanical royalties, in my opinion, has no commercial merit.
In June 2024, a few months after Spotify began including the limited audiobook functionality (15 hours of listening time per month) in Spotify’s premium tier, it launched a tier called Spotify Basic. Spotify Basic, which is $1 to $3 less expensive than Spotify’s premium tier, depending on the number of users, is what Spotify’s premium tier was prior to November 2023 — a music subscription service without the audiobook functionality. It is the service that tens of millions of users signed up for prior to November 2023 because they acknowledged the value of unfettered access to music and are willing to pay for it. But all of those premium users, regardless of whether or not they want audiobooks, are now considered by Spotify to be bundled subscribers as of March 2024. That is, unless they manually selected to switch to Spotify Basic.
Most Spotify users probably don’t know that all of this happened, or that Spotify Basic exists. Spotify Basic is not available to new subscribers; it is only available in the U.S. to existing premium users who were subscribed as of June 20, 2024. Promotion and marketing of Spotify Basic to qualifying users has been limited. If a Spotify user cancels their Spotify Basic plan later on, it is not possible to resubscribe to it. Basic is also not available via upgrade paths. For example, a subscriber cannot upgrade from Basic Individual to Basic Duo. Instead, they are forced to pay $2 more for Premium Duo even if they have no interest in audiobooks.
Since Spotify’s November 2023 launch of the limited audiobook functionality, it has not been possible for new Spotify users to obtain a Spotify subscription that does not include audiobooks (save for qualifying student plans, which are bundled with Hulu). This is important because, absent a clearly presented and available option for a new (or existing) customer to choose between one offering that is music-only and another offering that includes audiobooks but is more expensive, the very clear conclusion is that music alone continues to drive consumer decision making around Spotify, including users’ decisions to pay for Spotify, what price they are willing to pay and what levels of price increases they are willing to endure without canceling their subscriptions.
Most Spotify users also don’t know that there’s a Spotify Audiobook Access tier. Last year, many — including this author — opined that the Audiobook Access tier was launched solely in the U.S. for the primary or sole purpose of lending legal support and a pricing benchmark to Spotify’s reduction of mechanical royalties. One year later, this appears on its face to have been true. Spotify Audiobook Access only remains available in the U.S., and there appears to be little, if any, earnest effort on Spotify’s part to promote and market it to consumers. They do not publicly report subscriber numbers for Spotify Audiobook Access, nor do they seem to talk about it much. In my opinion, it appears to be an offering that Spotify is not serious about and that was launched to prop up the reduction of songwriter’s mechanical royalty payments.
I’ve also been asked why Spotify did not declare its premium tier to be a bundled product when it began offering podcasts to subscribers many years before its introduction of audiobooks. The answer may lie in the fact that podcasts are monetized by selling advertising to businesses and brands, and there has been clear demand for Spotify to provide that service. Audiobooks, by contrast, have historically been monetized mostly via subscriptions sold to consumers by digital retailers. In Spotify’s case, it is possible that while some segment of premium subscribers might utilize limited audiobook access if they are already paying to access unlimited music, those same subscribers might not be motivated enough to pay Spotify specifically for access to audiobooks. In other words, engagement alone might not be an indicator of willingness to pay. It costs Spotify money to offer audiobooks to its subscribers, and if those subscribers aren’t willing to pay for them specifically, it’s possible that Spotify needs to offset those costs in some other manner. As I’ve opined before, I believe this has been a material driver behind Spotify’s bundling initiative that has cost songwriters and music publishers hundreds of millions of dollars in U.S. mechanical royalties to date.
Spotify’s financials post-bundling
Finally, let’s talk about how this issue has impacted Spotify’s financial performance. Spotify’s premium gross margin increased from 29.1% to 33.5% between Q4 2023 (the last full quarter unimpacted by Spotify’s reduction of mechanical royalties via bundling) and Q1 2025. The $230 million first-year loss of U.S. mechanical royalties reported by the NMPA equates to about 1.4% of Spotify’s global premium revenue of 13.82 billion euros (approximately $15.89 million) for 2024. There are a number of factors that have allowed Spotify to improve its gross margin performance, but its reduction of U.S. mechanical royalties has contributed to that improvement on a very real and material basis, as Spotify has noted on quarterly earnings calls.
Spotify’s gross margin improvement has undoubtedly been a big factor in the performance of its stock, which is up about 130% year-over-year as of this writing. It is perverse that songwriters and music publishers have contributed so meaningfully towards these recent improvements in Spotify’s financial performance and the market’s reaction, yet find themselves not only unrewarded for their contributions but on the wrong end of Spotify’s efforts to reduce its U.S. music publishing costs.
So, where do songwriters and music publishers go from here? While it has been reported that Universal Music Publishing Group and Warner Chappell have entered into direct agreements with Spotify for the U.S. as part of broader deals that include their associated record labels, the upcoming Phonorecords V process before the Copyright Royalty Board — which starts early next year — presents the entire songwriter and music publishing community with the opportunity to right Spotify’s wrong. I encourage all who depend on songwriting and publishing royalties for their livelihood to educate themselves on the facts and stay aware of new developments.
Adam Parness was the global head of music publishing at Spotify from 2017 to 2019. He currently operates Adam Parness Music Consulting and serves as a highly trusted and sought after strategic advisor to numerous music rightsholders, notably in the music publishing space, as well as popular global brands, technology-based creative services companies and firms investing in music and technology.
This week’s roundup of Publishing Briefs includes several signings (and a podcast) at Sony Music Publishing, a new member country for the International Confederation of Music Publishers, and a full slate of updates from the National Music Publishers’ Association’s annual meet-up in NYC.
Big Yellow Dog Music, a Nashville-based publisher and artist development company, signed singer-songwriter and producer Landon Sears. Originally from Danville, Ky, Sears began with bluegrass fiddle before shifting to hip-hop, a genre shift that helped launch his successful career in the K-pop industry. He’s earned platinum records and No. 1 hits in Korea, with credits for top acts like NCT 127, Kang Daniel and CIX. Big Yellow Dog CEO Carla Wallace called Sears’ versatility “liberating,” while senior director Nicole Rhodes added that his “energy, hard work and talent speaks for itself.”
Sony Music Publishing inked UK-born, LA-based songwriter and producer Joe Reeves to a global publishing deal. Known for his work with artists like Post Malone, Ed Sheeran, Juice Wrld, H.E.R. and Morgan Wallen, his credits include tracks on Malone’s chart-topping album F-1 Trillion and Wallen’s latest Billboard 200 No. 1 I’m The Problem. Sony’s Clark Adler praised Reeves’ genre-spanning impact and potential for continued success, adding, “Joe is an incredible songwriter who is constantly upping his game.”
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Frank Ray inked a global publishing deal with Sony Music Publishing Nashville. Known for merging his Mexican American roots with contemporary country, Ray has gained attention with tracks like “Streetlights,” “Uh-huh (Ajá),” and his breakout single “Country’d Look Good on You,” which led to his Grand Ole Opry debut in 2022. His latest release, “Miami in Tennessee,” continues blending country and Latin influences. “Frank is a one-of-a-kind talent, and his authenticity shines through in every song he writes,” said Kenley Flynn, SMPN’s vp of creative A&R. “We are thrilled to welcome Frank to the SMP family and can’t wait to see all that’s ahead for him.”
At its annual meeting yesterday (June 11), National Music Publishers’ Association president/CEO David Israelite and general counsel Danielle Aguirre emphasized the need for unity across the industry to boost songwriter compensation. Key battlegrounds for improvement include interactive streaming, general licensing and social media. Spotify’s bundling tactics and Amazon’s revenue cuts were sharply criticized, and the NMPA also highlighted licensing gaps among small and mid-sized venues while taking aim at B2B services for rights violations. Despite challenges, the event — held in NYC — celebrated achievements, honoring songwriters like Kacey Musgraves, Rhett Akins, Gracie Abrams and Aaron Dessner with performances and awards. Read Kristin Robinson’s full wrap of the event here.
Philip Morgan inked a global publishing deal with Warner Chappell Music Nashville and The Core Entertainment. A Texas native now based in Nashville, Morgan has written songs for artists like Chase Matthew (“How You Been (Letter to the County Line Girl)”) and earned acclaim with awards including the 2024 American Songwriter Country Song of the Year with Natalie Otto for “5 O’Clock Shadow” and NSAI’s Chapter Challenge for “Gone, Gone, Gone!” Known for collaborating with industry talent and mentoring emerging artists like Austin Michael and Hunt Pipkin, Morgan is lauded by Benji Amaefule of WCMN as an “emerging force” who “brings a valuable versatility to connect and craft timeless stories in the room.”
Soundcrest Music Publishing signed a co-publishing deal with Nashville singer-songwriter Laura Sawosko. The agreement includes her current and future works, notably her 2025 independent release Not What I Do — “Her songs are real—they draw you in,” says Soundcrest vp of A&R and publishing Michael Owunnah. Soundcrest will support Sawosko through creative collaboration, sync opportunities, and strategic development. She also recently joined PLA Media’s artist roster, boosting her industry presence.
Sony Music Publishing Nashville launched Thank A Songwriter, a new podcast celebrating songwriters in country and beyond. Hosted by SMPN CEO Rusty Gaston, the debut episode — out today (June 12) — features part one of an in-depth convo with hitmaking songwriter Ashley Gorley, coinciding with his induction tonight into the Songwriters Hall of Fame. The podcast will spotlight diverse SMP songwriters, exploring their stories and inspirations.
Electric Feel Publishing signed Toronto-based artist, producer and songwriter Steve Francis Richard Mastroianni. Best known for co-writing Morgan Wallen’s hit “Love Somebody,” Mastroianni has also worked with artists like Dua Lipa, Gordo and Digital Farm Animals. Founder and CEO Austin Rosen welcomed the partnership, calling it the “start of an exciting new chapter.”
MPA Iceland joined the International Confederation of Music Publishers (ICMP), becoming its 80th national member. ICMP represents the global music publishing industry, including both major and indies across 76 national associations on nearly every continent (no Antarctic publishing biz just yet). MPA Iceland advocates for the island nation’s music publishing sector. ICMP Director General John Phelan praised Iceland’s global musical influence, citing artists like Björk and Sigur Rós, and welcomed MPA Iceland to its international network.
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.”
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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.
Gracie Abrams, Thomas Rhett, Aaron Dessner and Leon Bridges are performing at this year’s National Music Publishers’ Association annual meeting on Wednesday (June 11) at Lincoln Center’s Alice Tully Hall. The event, which acts as a state-of-the-union for music publishers, has continued to integrate more songwriters into the event in recent years to honor the talents that publishers serve every day.
Abrams and Dessner are part of a special segment of the meeting, dedicated to the Billboard Songwriters Awards, a collaboration between Billboard and the NMPA which was rescheduled from GRAMMY week due to the Los Angeles wildfires. Abrams is set to receive the Breakthrough Songwriter Award to account for her fast-growing career as an artist, and Dessner will be given Billboard‘s Triple Threat Award for his success as a songwriter, producer and musician. Though to pop fans Dessner might be best known for his work producing and writing with Taylor Swift, Bon Iver, Ed Sheeran and Abrams, he is also lauded in the indie rock space as a longtime member of the band The National. Both are set to perform.
Additionally, the NMPA is giving out awards of its own. It’s Non-Performing Songwriter Award this year is going to Rhett Akins, and as part of that honor, his son, Thomas Rhett, will perform a medley of his father’s vast country catalog, which includes songs like “Dirt On My Boots” by Jon Pardi, “Honeybee” by Blake Shelton, “I Don’t Want This Night To End” by Luke Bryan, “Small Town Boy” by Dustin Lynch, “Look What God Gave Her” by Rhett, and many more.
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The NMPA’s Songwriter Icon this year is Kacey Musgraves, and Bridges is flying in to pay tribute to Musgraves by performing a rendition of two of her songs.
The NMPA Annual Meeting, which is attended by a who’s who of the music publishing business, will also feature a keynote conversation with Oliver Schusser from Apple Music, and an address from the organization’s CEO/president David Israelite this year. Typically, Israelite’s speech includes a major announcement about new action the NMPA is taking to protect publishers and their writers. Last year, Israelite took on Spotify for cutting payments to publishers by about 40% that year through a multi-faceted attack plan, which is still on-going. He has also used the stage to announce lawsuits against Roblox, Twitter and more for using publishers’ copyrights without a license in previous years.
In 2024, the NMPA gave the Songwriter Icon award to Lana Del Rey and the Non-Performing Songwriter Icon award to Savan Kotecha, who has written hits like “Azizam” by Ed Sheeran, “God Is A Woman,” “Break Free” and “Break Up With Your Girlfriend, I’m Bored” by Ariana Grande, “I Can’t Feel My Face” by The Weeknd, “What Makes You Beautiful” by One Direction and more.
This year, Kacey Musgraves will be honored with the Songwriter Icon award at the National Music Publishers’ Association (NMPA) annual meeting. The NMPA will also honor longtime Nashville hitmaker Rhett Akins as its Non-Performing Songwriter Icon Award recipient this year for his three decades of contributions to country music, including songs performed by Brooks & Dunn, Blake Shelton, Thomas Rhett, Jason Aldean, Luke Bryan and more. The meeting will also feature a keynote conversation with Apple Music head Oliver Schusser.
The NMPA annual meeting, which will take place at Lincoln Center’s Alice Tully Hall on June 11 in New York, is known in the business as a state of the union for the music publishing sector each year and a gathering place for its top executives to mingle. Along with honoring some of the top songwriters in the industry, NMPA president/CEO David Israelite also gives a speech at each meeting, detailing how the publishing business is doing.
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Israelite has also been known to drop groundbreaking news every year in this speech. Last year, he targeted Spotify for cutting payments to songwriters and publishers by about 40% and announced his plan to send sending an official complaint to the Federal Trade Commission (FTC) as well as letters to the attorneys general of nine states and a list of consumer groups — urging them to stop Spotify’s efforts to bundle music and audiobooks into its premium tiers. That built on top of previous news that the NMPA had sent a cease and desist notice to Spotify for alleged unlicensed lyrics, video and podcast content on the platform, and thatthe Mechanical Licensing Collective (MLC) had sued Spotify. (In January, the MLC’s case was dismissed by a judge who said Spotify’s move to cut payments was supported by “unambiguous” regulations. The MLC said it plans to keep fighting.)
Other previous bombshell announcements have included major copyright infringement lawsuits against Roblox, Twitter and more, and legal action against 100 different apps for allegedly skimming music from digital services without a license.
This year’s annual meeting will include a special segment dedicated to the Billboard Songwriter Awards, which were scheduled to take place during Grammy week but were postponed due to the Los Angeles wildfires. The award recipients will be announced at the event.
“We are thrilled to honor Kacey Musgraves whose music has always been driven by lyric and melody,” says Israelite. “A consummate songwriter, she is a successful solo hitmaker and renowned collaborator. Additionally, we look forward to celebrating the career of Rhett Akins whose songwriting has been central to the growth of country music.
“We are particularly excited to feature the Billboard Songwriter Awards after our GRAMMY Week event was postponed. The honorees are incredibly deserving, and it will be a phenomenal special segment of the program.
“Finally, Oliver Schusser has been an innovator throughout his career and we are eager to get his perspective on the myriad of opportunities and challenges for digital services in the streaming economy.”
National Music Publishers’ Association (NMPA) president/CEO David Israelite joined the Association of Independent Music Publishers (AIMP) to give his annual State of Music Publishing address on Wednesday (April 2) at Lawry’s in Beverly Hills. In his speech, Israelite discussed hot button issues for publishers, including Spotify bundling (“we are still at war”), AI concerns, PRO reform and more.
Israelite started by sharing the NMPA’s data on the revenue sources for songwriters and publishers. It found that songwriters and publishers earn 45% of revenue from streaming services, 11% from general licensing and live, 9% from traditional synchronization licensing, 8% from mass synch (licenses for UGC video platforms like YouTube), 8% from radio, 7% from TV, 4% from labels, 2% from social media, 1% from sheet music, and 1% from lyrics. The NMPA says that 75% of its income is regulated by either a compulsory license or a consent decree, while the remaining 25% is handled via free-market negotiation.
On the AI front, Israelite explained that the NMPA is actively watching and supporting pending legal action.
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“We have not filed our own lawsuit yet, but I can promise you that if there is a path forward with a productive lawsuit, we will be filing it,” he said. As far as trying to regulate AI through policy, Israelite added, “We’re doing everything that can be done.” The NMPA is participating in both a White House initiative and a Copyright Office initiative, but he added, “If you are waiting for the government to protect your rights and AI models, I think that is a very bad strategy.”
Instead, Israelite said that the “most emphasis” should be placed on forming business relationships with AI companies. “When that date comes [that AI companies are willing to come to the table to license music], I believe the most important principle is that the song is just as valuable, if not more, than the sound recording in the AI model,” he continued.
During the speech, Israelite said he had a recent conversation with “the CEO of one of the major AI companies” who told him that “by far, the song [as opposed to the sound recording] is the most important input into these models. I tell you this because I am fearful that as these models develop, if we do not protect our rights, we will find ourselves in a situation where we are not getting as much or more than the sound recording when it comes to revenue…that is a responsibility of this entire community to fight for that.”
Israelite added that his “number one problem when it comes to revenue is how we are treated with these bundled plans,” pointing to publishers’ ongoing issues with Spotify. Last year, Spotify added audiobooks into its premium tier offerings and began claiming those tiers as “bundles,” a term referring to a type of subscription that qualifies for a discounted rate for music. Spotify claimed that it now had to pay to license both books and music from the same subscription price and subsequently started paying songwriters and publishers about 40% less for music, according to the NMPA. At the time, Billboard estimated that this would lead to a $150 million reduction in payments to publishers in the next year, compared to what publishers would have been paid if the tiers had never been reclassified.
In January, news broke that Universal Music Group (UMG) and Spotify had forged a direct deal that gave UMG’s publishing arm improved terms, effectively minimizing the harm caused by the previous year’s bundling change. Shortly after, Warner Music Group (WMG) followed suit with its own direct deal with Spotify for improved publishing remuneration. “I know in this room in particular, there is a great concern about what those market deals mean for the whole industry,” Israelite says. “I want to be very clear about this. I believe those market deals are a good thing, but until everybody benefits from the same protections about how bundles are treated, we are still at war. Nothing has changed.”
Israelite added later that UMG and WMG’s direct deals could be cited as “evidence” to support the publishers’ position during the next Copyright Royalty Board (CRB) fight, which will determine the U.S. mechanical royalty rates for publishers in the future. The CRB proceedings begin again in 10 months, and Israelite estimates his organization will spend $36 million in the next trial to fight for the publishers’ position. While he often noted that “we shouldn’t be in this system in the first place” during his address, Israelite conceded that despite his calls for a legislative proposal that would give publishers and writers the right to pull out of the 100-year-old system of government-regulated price setting for royalties, the “brilliant idea” is “next to impossible to accomplish.”
Israelite went on to detail all the ways the NMPA and others are still fighting back against Spotify over the bundling debacle. He noted that the Mechanical Licensing Collective (MLC) “is doing a fantastic job of continuing the fight” against Spotify, adding that its lawsuit, which was dismissed earlier this year by a judge who called the federal royalty rules “unambiguous,” has “been revived.” He added, “[It’s] our best chance of getting back what we lost.”
Elsewhere in his speech, Israelite told the crowd of independent publishers that the NMPA has now sent three rounds of takedown notices to Spotify for various podcast episodes, citing copyright infringement of its members’ songs, and that “over 11,000 podcasts have been removed from Spotify” as a consequence.
The recent calls for performing rights organization (PRO) reform are also top of mind for publishers in 2025. Last year, the House Judiciary Committee sent a letter to the Register of Copyrights, Shira Perlmutter, requesting an examination of PROs, citing two areas of concern: the “proliferation” of new PROs and the lack of transparency about the distribution of general licensing revenue. This spurred the Copyright Office to take action, opening a notice of inquiry that allows industry stakeholders to submit comments, sharing their point of view about what, if anything, should be reformed at American PROs. However, some fear that the notice of inquiry could lead to increased regulation at the PROs, further constraining publishing income.
Israelite addressed this by giving publishers a preview of the NMPA’s forthcoming comments. “I will tell you today exactly what our comments are going to say,” he said. “It is very simple. Music publishers and songwriters are already over-regulated by the federal government. Congress should be focused on decreasing regulation of our industry, not increasing regulation of our industry, and to the extent that any of these issues are substantive issues. This should be dealt with between the PROs and their members. It has nothing to do with the Copyright Office. It has nothing to do with Congress. It has nothing to do with the federal government.”
The National Music Publishers’ Association (NMPA) announced on Tuesday (Feb. 4) that it would issue takedown notices to Spotify for 2,500 podcast episodes on the platform that allegedly contain “unlicensed musical works” from 19 NMPA member publishers.
“Spotify has thousands of unlicensed songs in its podcasts, which it has done nothing to remedy. This takedown action comes as no surprise, we have warned of this issue for some time,” says NMPA president and CEO David Israelite of the takedown notices. According to the NMPA, this is just the start of the takedown requests, and the demands will continue to roll out.
This is the latest of many retaliatory actions the NMPA has taken against Spotify since last March, when Spotify significantly cut payments to NMPA’s members for premium subscriptions. By adding audiobooks into its premium subscription tiers, Spotify argued it qualified for a discounted royalty rate, known as “bundle,” given it would now have to pay for books and music from the same price tag that was once just for music. Israelite said at the time that he would “declare war” on Spotify for this move, and launched a number of actions to fight back.
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This included sending cease and desist notices for podcast and video content on its platform that were allegedly infringing on music IP; a legislative proposal, asking for the overhaul of the statutory license; complaints to the FTC and nine state attorneys general; and more. Around the same time, the Mechanical Licensing Collective (MLC) also fought back by filing a lawsuit against Spotify for the move to bundle premium subscriptions, calling it “unlawful.”
On Sunday, Jan. 26, the Spotify bundling issue was brought back into the headlines when Universal Music Group announced a new direct deal with Spotify which included changes both to the recorded music and publishing royalty rates. This marked the first direct deal between Spotify and a publisher since the passage of the Music Modernization Act (MMA), and sources close to the deal say that the agreement included improved remuneration for UMG’s publishing company, Universal Music Publishing Group, and its songwriters.
Still, all other publishers, most of which are members of the NMPA, remain on the baseline bundle rate. The NMPA told Billboard at the time that the deal 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,” but the organization also added it had no plans to stop any of the actions it had already set in motion against Spotify, and neither did the MLC.
A few days later, on Jan. 29, the MLC’s lawsuit against Spotify was dismissed, with a federal judge saying that Spotify’s move to bundling was supported by “unambiguous” regulations. The judge is not giving the MLC a chance to refile and said the law is clear. Still, if the MLC wants to, it can challenge the ruling at the federal appeals court.
These takedown requests make it clear that the NMPA is not ready to bury the hatchet with Spotify. Among the 2,500 takedown requests are podcasts that allegedly contain unlicensed musical works from publishers like ABKCO, Anthem Entertainment, Big Machine Music, BMG, Concord Music Publishing, Downtown Music Publishing, Hipgnosis Songs Group, Kobalt, Mayimba Music, peermusic, Primary Wave Music, Reservoir, The Royalty Network, Inc., Sony Music Publishing, Spirit Music Group, Ultra Music Publishing, Universal Music Publishing Group, Warner Chappell Music, and Wixen Music Publishing.
Israelite adds: “Podcasts are a growing source of revenue for songwriters and publishers, and it is essential that podcasts provide lawfully produced entertainment. This is not hard to do, and Spotify knows, and has known, how to fix this problem for their users. We hope podcast hosts will stand up for their fellow creators and demand that Spotify do better. Spotify will stop at nothing to undervalue songwriters on behalf of its bottom line. Look no further than its recent bundling scheme and its ill-conceived appeal of songwriters’ rate increase in CRB III. We will not stop until the platform fixes its podcast problem, and all other areas where songwriters are not earning what they deserve.”
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.
