Publishing
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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.
Sony Music Publishing has promoted Katie Welle to president and head of U.S. A&R, effective Feb. 1. Welle will succeed Walter Jones, who is leaving the company after nearly three years in the role. In her new position, which is based in Los Angeles and reports up to SMP chairman and CEO Jon Platt, Welle […]
Sony Music Publishing has launched its new flagship office in Bangkok, Thailand to expand its development and promotion of Thai songwriters. To helm the new operation, SMP has appointed Tatchara Longprasert as General Manager of SMP TH. Longprasert will report to Carol Ng, President, Asia, Sony Music Publishing.
Kobalt has signed a global publishing administration deal with New Zealand singer-songwriter Tim Finn. As part of their agreement, Kobalt will administer Finn’s entire catalog of songs, including Split Enz’s “I Hope I Never,” “I See Red” and “Six Months In A Leaky Boat,” and Crowded House classics like “Four Seasons In One Day,” “It’s Only Natural” and “Weather With You.” The deal also covers Finn’s expansive solo work, including standouts like “Fraction Too Much Friction” and “Winter Light,” and his critically acclaimed partnership with younger brother Neil in The Finn Brothers.
Warner Chappell Music and Madfun Entertainment have signed a global publishing deal with Grammy-nominated songwriter and producer Sam Ellis. He has co-written an impressive list of No. 1 hit songs, including Lady A’s “What If I Never Get Over You” and Ingrid Andress’s “More Hearts Than Mine.”
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peermusic has signed Peruvian rapper/songwriter Jaze to a global publishing deal. A collaboration between peermusic’s U.S. Latin and Argentina teams, Jaze’s deal encompasses both his existing song catalog and future works.
Wise Music Group has announced the sale of its music education division, including MusicFirst, Rising Software, Charanga, O-Generator, and Focus on Sound to private equity firm Achieve Partners. Robert Wise, chairman of Wise Music Group said of the deal: “We are confident that these brands will continue to thrive under their stewardship. At the same time, we can now fully dedicate ourselves to our core mission of music publishing with clarity and purpose.”
Tresóna, a partner to music publishers for licensing scholastic, community and professional organizations, has released liSynce, an easy-to-use synch licensing deal for memorial and funeral service videos. Though not many funeral and memorial homes are obtaining licenses for these activities to date, given previous licensing complexities and lack of enforcement, Tresóna estimates that the market is worth as much as $20 million a year.
Australia’s music industry is mourning the loss of Matthew Capper, the long-serving former managing director of Warner Chappell Australia, who died unexpectedly earlier this month following a surgical procedure.
Capper suffered a ruptured appendix in late December, and could not fight off the infection after the operation, reads a statement from his family.
A stalwart with more than 20 years’ service at Warner Chappell Australia, Capper led the business as managing director from 2010, until his departure in February 2024, part of a company-wide downsizing.
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Dan Rosen, president of Warner Music Australasia, remembers Capper as a top-notch executive, a good sport, and a great person. “He cared deeply about the songwriters he represented,” Rosen writes in a message to staff, The Music Network reports, “and his efforts to protect and celebrate their music made a lasting impact on Warner Chappell and the broader music community in Australia. He was above all else, in every interaction, a gentleman.”
In 2005, Capper became the youngest person ever appointed to the AMCOS board at the age of just 28. Two years later, in 2007, he became the youngest to join the APRA board, at 30. He remained a director on both boards until late February 2024, as well as serving as deputy chair of the AMCOS board from 2020-2024.
Friends, former colleagues and business rivals are paying their respects. “I’m completely shocked and saddened to hear of the passing of dear friend and colleague, Matthew Capper. I remember Matthew as an incredibly sincere, principled professional who was passionate about music publishing. He was self-deprecating, always loved a joke and enjoyed spending time with colleagues,” comments Dean Ormston, CEO of APRA AMCOS.
“He had great regard for the work of APRA AMCOS and was very proud of his long connection to the organization and staff. He will be sorely missed by us all, and our thoughts go out to his friends and family at this very difficult time.”
Jenny Morris, chair of APRA, says Capper’s death is a tough one for the industry. “We have had many losses from the music industry family in the last few years, all of which have been sources of great sadness, but Matt’s death has been a huge shock,” she remarks. “Matt was one of the most decent, wise and funny people and I feel very privileged not only to have known him, but to have had his friendship.”Capper, she continues, “worked with genuine care and a great amount of industry awareness on the APRA board, and on more than a few occasions sent supportive messages at just the right time. He was an empath as well.”
Through his career, Capper was a tireless advocate for the music publishers community. He was voted into the position as chair of the Australasian Music Publishers’ Association (AMPAL) in 2013, almost a decade after joining the trade body’s board, in 2004. Capper also represented AMPAL on the International Confederation of Music Publishers (ICMP) board, both as non-executive director and more recently as Treasurer, a position he was especially proud of. His involvement with ICMP extended to chairing its Australasia and Asia Regional Group.
“I was lucky to spend a lot of time with Matthew on the AMPAL, AMCOS and APRA boards, often travelling to Sydney together from Melbourne for meetings,” remembers Jaime Gough, chair of AMCOS. “Matthew was a true professional, a great mentor and sounding board. He was passionate about the songwriter and publisher members we represent, and a vocal advocate for their rights.”
Gough, managing director of Concord Music Publishing ANZ (formerly Native Tongue), continues, “I am still in a state of shock at Matthew’s passing. He had so much more to give to the music industry, many more meals to cook, and will be sorely missed. My thoughts go out to his family and friends.”
The late executive will not have a funeral, per his wishes.
Capper “reached some dizzying heights, and he met a lot of people that he greatly respected, even after meeting them,” reads the family statement. “We think he was quietly proud of his achievements. We certainly were. We’re also certain he thought he had a lot more work to do. Hopefully others have been inspired by him and can continue that.”
In fall 2023, Deezer announced it was adopting an “artist-centric” royalty model with Universal Music Group (UMG) in an effort to better compensate acts with significant followings and the rightsholders who own their recordings. That move, intended to tackle fraud and reduce royalties flowing to what is essentially noise and “functional music” was intended to rebalance a streaming model that some major players believe needs reform. Other major labels followed, as did Spotify, which made different adjustments to its royalty model toward the same end.
On Wednesday (Jan. 15), Deezer and the French PRO SACEM announced a deal to compensate publishing rightsholders the same way. “We started a year and a half ago with UMG and then the other majors,” said Deezer CEO Alexis Lanternier. “And now we’re doing it on the publishing side.”
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SACEM’s interest in this idea goes back to an analysis of the potential effects of artist-centric royalty payouts that the PRO conducted last year. “The first thing I wanted was to remove noise from the revenue, especially at a time when dilution is an issue” said SACEM CEO Cécile Rap-Veber, “The second thing is that it helps prevent fraud.”
While Deezer will not remove any music from its platform as a result of this agreement, the service will either demonetize or essentially allocate less royalties to some tracks, by boosting the royalties earned by others. The change, which will take effect soon, could help labels and services better prepare for the age of AI, when music executives worry that online services will be flooded by unpopular, low-value music that cuts into their business with sheer scale. “With AI coming,” Rap-Veber says, “we’re afraid that human creation might be affected.”
Deezer’s specific plans are more ambitious than what it did on the recording side. Like other artist-centric models, artists get a royalty boost for hitting a measure of popularity — in this case, double royalties for songs that are actively searched out or those by artists with 1,000 streams a month from 500 different subscribers.
More interesting, the service will impose what it calls a “user centric cap” that will limit how much the listening choices of any individual subscriber can affect royalty payouts, which will also make fraud more difficult and less efficient. Also, Deezer will completely exclude from the royalty pool tracks that consist of noise and “functional sounds,” such as rain on a roof; instead, Deezer will recommend similar music that it owns, which will not count for payout purposes and thus not take royalties from other rightsholders. (Some of these tracks might not even be considered copyrighted works under EU law, at least on the publishing side. While recording the sound of rain on a roof might arguably involve creative choices, there is no composer in the sense of copyright law.) Deezer will also remove tracks that have not been streamed in a year.
Tim Finn, the celebrated New Zealand singer and songwriter, has signed a worldwide publishing deal with Kobalt.
Announced this week, Kobalt will administer Finn’s entire catalog of songs, which includes Split Enz’s “I Hope I Never,” “I See Red” and “Six Months In A Leaky Boat,” and “I Got You,” which reached No. 53 on the Billboard Hot 100 in 1980. Also included is Crowded House’s “Four Seasons In One Day,” “It’s Only Natural,” and “Weather With You,” plus solo works.
“We are thrilled to announce this new partnership with Tim Finn, a legendary figure in the world of music,” comments Simon Moor, managing director of Kobalt for the APAC region. “From his groundbreaking work with Split Enz to his contributions to Crowded House and his illustrious solo career, Tim has consistently showcased his incredible songwriting talent.”
Adds Finn: “Simon Moor and his team at Kobalt are energized music lovers. I’m excited to see what we can do together. It feels like a new chapter is waiting to be written for me and my songs.”
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Finn formed Split Enz in his homeland in the early 1970s. By the time Split Enz called it a day in December 1984, the band had banked a treasure chest of hits, including “Message to My Girl,” “My Mistake” and “Dirty Creatures”.
At that stage, Finn had already launched his solo career. His debut from 1983, Escapade, cracked the Billboard 200, peaking at No. 161.
Finn briefly joined forces with his younger brother and former Split Enz bandmate Neil on the third Crowded House project, Woodface, released in 1991. Woodface hit No. 82 on the Billboard 200.
A told, four Split Enz albums crashed the U.S. albums tally and the band was inducted into the ARIA Hall of Fame in 2005. Crowded House’s elevation came in 2016.
Finn’s latest work has included songs and soundtracks for film, television and musical theater, including Ladies in Black, for which he received a Helpmann Award for best new Australian work. His most recent solo album, 2021’s Caught by the Heart, is a collaboration with Roxy Music guitarist Phil Manzanera, who produced the Split Enz album from 1976, Second Thoughts.
Boasting 13 global offices, Kobalt serves over 1 million songs, representing the likes of Roddy Ricch, Max Martin, Karol G, Andrew Watt, Stevie Nicks, Phoebe Bridgers, The Lumineers, Foo Fighters, Paul McCartney and others.
The Songwriters of North America (SONA) Foundation has relaunched its Songwriter Fund to provide emergency relief for songwriters and composers impacted by the wildfires in Los Angeles. To qualify, songwriters should visit the organization’s website and provide a few examples that demonstrate professional-level work as a musician, prove they were based in and around the […]
Reservoir Media has acquired the publishing catalog of Lastrada Entertainment. Home to over 5,600 compositions, the family-run company publishes hits that span all genres from the 1960s to today, including songs recorded by Jim Croce, Glen Campbell, The Carpenters, Captain & Tennille, Neil Sedaka, Eminem, Dolly Parton, H.E.R., Leon Bridges, Notorious B.I.G., Eminem and more.
Lastrada Entertainment was founded in 1987 by Herb Moelis and has since been passed down to his children Stephen and Larry Moelis. As the company has grown over the last four decades, it has acquired evergreen hits like Jim Croce’s “Bad, Bad Leroy Brown” and “Time In A Bottle,” “Love Will Keep Us Together” by Captain & Tennille, “More Bounce To The Ounce” by Zapp, and The Whispers’ “And The Beat Goes On.”
Then, in the 1990s, the catalog was given new life when decade-defining rapper 2Pac sampled a Lastrada Entertainment song in his single “California Love.” Later, the catalog also benefitted from samples in “We Belong Together” by Mariah Carey, “Miami” by Will Smith and more.
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“We have long admired Lastrada and the incredible catalog that the Moelis family has curated over the years,” says Rell Lafargue, president and COO of Reservoir. “Stephen and Larry’s deep knowledge of the music and their dedication to innovative sampling and synchs have elevated this catalog to iconic status. We are honored that Reservoir is now the home to the songs of Lastrada, and we look forward to preserving the legacy the Moelis family has built and ensuring its continued success.”
Lastrada’s president of music publishing Stephen Moelis adds, “The Moelis family takes pride in the catalog of hits we were part of, and in the personal relationships we forged with our incredibly talented songwriters. Passing the creative torch to Reservoir is the natural next step to continue the work we started with our father 40 years ago, and we wish to thank Golnar Khosrowshahi, Rell Lafargue, and the entire Reservoir team as they become stewards of some of the great songs of all time.”
The Pacific Palisades fire destroyed the building housing Belmont Music Publishers, the exclusive publisher of physical works by early 20th century composer Arnold Schoenberg. The fire consumed Belmont’s entire inventory of sales and rental materials, including manuscripts, scores and other printed works, the publisher said.
“For a company that focused exclusively on the works of Schoenberg, this loss represents not just a physical destruction of property but a profound cultural blow,” said a press release written by Schoenberg’s son, Larry, who also lost his home in the fires, according to his nephew E. Randol Schoenberg.
Since the 1970s, Belmont has worked to preserve Schoenberg’s legacy, providing meticulously edited editions of his wide range of transformative compositions, including Verklärte Nacht and Pierrot Lunaire, to musicians and scholars.
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Despite the loss of its physical inventory, Belmont Music said it already has plans to rebuild the collection digitally, ensuring the music of Schoenberg — the author of the twelve-tone technique of composition — remains accessible to scholars, performers, and music enthusiasts.
“While we have lost our full inventory of sales and rental materials, we are determined to continue our mission of bringing Schoenberg’s music to the world,” the publisher said. “We hope to rebuild our catalog in a new, digital format that will ensure Schoenberg’s music remains accessible for future generations.”
The Belmont team added, “We are committed to rebuilding and adapting to the changing times. The community’s outpouring of support has been truly heartening, and we know that, with your help, we can ensure that Schoenberg’s legacy lives on in a way that is as dynamic and enduring as his music.”
Born in Vienna in 1874, the self-taught Schoenberg initially drew inspiration from German Romantic composers like Brahms but is most renowned for developing the twelve-tone technique, or serialism, which dispatched traditional tonality and treated all 12 notes of the chromatic scale equally.
As a teacher, Schoenberg mentored influential composers such as Alban Berg and Anton Webern, further cementing his legacy. Fleeing the Nazi regime in 1933, he emigrated to the United States, where he continued composing and teaching in Los Angeles until his death in 1951.
Several wildfires have broken out in Southern California since the beginning of the year, with the largest being in Pacific Palisades along the coast. The major fires have scorched more than 63 square miles, destroyed thousands of homes and killed at least 24 people. Here is a list of organizations providing relief for those impacted by the devastation, from families to first responders.
Songwriters Jessi Alexander, Amy Allen, Jessie Jo Dillon and RAYE will not be attending or performing at Spotify’s Songwriter of the Year Grammy party slated for Jan. 28, with Allen and Dillon citing Spotify’s treatment of songwriters as the reason for their absence. As a result, four out of five nominees in the Songwriter of the Year category at this year’s Grammys will be opting out of the event. (A representative for the fifth, Edgar Barrera, has not responded to Billboard‘s request for comment.)
Representatives for Allen (“Espresso” by Sabrina Carpenter, “Adore You” by Harry Styles and “greedy” by Tate McRae) and Dillon (“10,000 Hours” by Dan + Shay, “Lies Lies Lies” by Morgan Wallen and “Am I Okay?” by Megan Moroney) confirmed to Billboard that they both made the decision not to attend due to Spotify cutting royalty rates on premium streams for songwriters and publishers in April of last year, which Billboard estimated will lead to a $150 million decrease in royalties over 12 months compared to how much they would have made had the royalty rate not been reconfigured.
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Spotify believes it qualifies for a lower mechanical royalty rate for songwriters and publishers because it has added audiobooks to its premium subscription tiers and reclassified those services as “bundles,” with multiple services included in one price. Now, the royalty originally intended for songwriters and publishers alone is split between paying for music and audiobooks.
“After some thought, I couldn’t in good conscience support this initiative given their approach to bundling royalties,” said Dillon in a statement to Billboard. “It is very nice to be individually honored, but it is better for me and my entire songwriter community to be paid fairly for our art. There are no songs without songwriters.”
A representative for RAYE (“Escapism.” by RAYE, “Dancing With a Stranger” by Sam Smith & Normani, “Secrets” by One Republic) says the singer/songwriter never committed to attending or performing at this event, so “there’s nothing for her to back out of at present,” but adds that RAYE has been “an outspoken advocate on behalf of songwriters’ rights igniting an industry-wide dialogue on the topic.” A representative for Alexander (“Ain’t No Love in Oklahoma” by Luke Combs, “The Climb” by Miley Cyrus, “You, Me and Whiskey” by Justin Moore & Priscilla Block) confirmed to Billboard that she will not be attending the event but did not provide a reason for dropping out.
A representative for Spotify declined Billboard’s request for comment.
Spotify started its Songwriter of the Year Grammy event to celebrate the nominees for the prestigious writing award, which the Recording Academy established in 2023. Each Songwriter of the Year nominee has been invited to take the stage at Spotify party and sing the songs they wrote for other artists in a room full of their peers.
Other songwriters have taken to social media to express their dismay about Spotify’s upcoming event after receiving Save the Dates from the streamer. Songwriter Ross Golan said, via an Instagram Story, “If you are a songwriter, you cannot go to this. Do not let Spotify f— you on bundling and then give you free booze.” A 2023 Grammy Songwriter of the Year nominee Laura Veltz said in her own Instagram Story, “Spotify is robbing you. Songwriters: do not fall for this horse s—.”
In April 2024, Spotify officially added audiobooks as an offering to its premium tiers (which include premium, family and duo plans). By adding audiobooks, the streaming service claimed it now qualifies to pay a discounted so-called “bundle” rate to songwriters for premium, duo and family tier streams.
At the time, a Spotify representative said that “changes in our product portfolio mean that we are paying out in different ways based on terms agreed to by both streaming services and publishers” and called its decision to reclassify premium tiers as bundles as “consistent” with “multiple [other] DSPs.” Other competitors like Apple Music and Amazon Music do have bundled offerings — including Amazon bundling Prime and Amazon Music and Apple bundling Apple Music and Apple News — but Spotify’s move to make its popular premium tiers into bundles has a much larger impact than its competitors, given that Spotify is the most popular streaming service in the U.S. and the premium tiers are a widely used offering.
“Spotify is on track to pay publishers and societies more in 2024 than in 2023,” the Spotify representative added at the time, citing the company’s Loud and Clear report that says the streamer has paid nearly $4 billion to publishers, PROs and collection societies in the last two years.
The National Music Publishers Association (NMPA), The Mechanical Licensing Collective (MLC), and various songwriters did not take the news lightly. The MLC filed a lawsuit against Spotify in May, claiming the streamer “improperly” classified its premium tiers as bundles. The NMPA’s CEO/president David Israelite said Spotify had “declare[d] war” on songwriters and launched a multi-faceted attack that included sending a cease-and-desist for unlicensed lyrics, video and podcast content; unveiling a legislative proposal; and filing complaints with the FTC and nine other consumer trade groups.
Israelite has also voiced his disapproval over Spotify’s Songwriter of the Year party, saying in an Instagram post: “Is this a joke? Spotify declares war on songwriters. Is attempting to gut what they pay them. Is being sued by the MLC. And they think they can throw a party honoring songwriters? I’m at a loss for words. Actually, I’m not. Hubris. Audacity. Crassness. Hypocritical. Cynical. Forward this and add your own word.”