NMPA Says Spotify Bundling Change Cost Writers & Publishers $230M in First Year

Break out the champagne, folks, because U.S. music publishing revenue just hit a sweet $7.04 billion in 2024. The National Music Publishers’ Association spilled the beans at their gig in NYC’s cool-kid hangout, Lincoln Center, showcasing a stellar 17% uptick from last year’s $6.2 billion.

Celebrity sightings were aplenty at this shindig, with award-winning maestros like Kacey Musgraves, Rhett Akins, Gracie Abrams, and Aaron Dessner getting “heck yes” mentions. But beyond the glitz and glam, CEO David Israelite and legal whiz Danielle Aguirre doubled down on the need to jack up that revenue even more.

The call to arms at the event wasn’t just for showbiz butterflies; it was a plea for the entire music industry to stand together. Israelite’s rallying cry for songwriters to be valued cut through the swanky setting: “We should all stand behind [songwriters]…There has never been a greater need to stand up for the value of songwriters.”

Israelite and Aguirre zeroed in on three battlegrounds where the cash flow could use some steroids: general licensing, social media, and interactive streaming. Aguirre highlighted that a whopping 72% of publishing moolah is smothered under red tape in the U.S., but there are ways to bust through that barrier within the system.

Interactive Streaming

When it comes to interactive streaming, Aguirre fired off a warning shot about the upcoming Phonorecords V showdown at the Copyright Royalty Board. Brace yourselves, as this fracas will determine how much songwriters and publishers rake in for U.S. mechanical royalties from 2028 to 2032.

But here’s the kicker: Spotify’s shady bundling tactics have been a thorn in the NMPA’s side. Aguirre laid bare the fact that songbirds have lost over $230 million due to these tricks, with a potential $3.1 billion going down the drain if the situation doesn’t shape up.

Social Media

Social media — the wild west of publishing where songsters can flex their bargaining muscle sans government meddling. Aguirre sniffed out the potential here, highlighting that social media streams are still a mere 2% slice of the income pie for U.S. publishers.

But Israelite isn’t one to shy away from a challenge. He’s set on empowering songwriters to demand fairer treatment and make the behemoths bow to better compensation.

Heady words aside, a battle royale is brewing in the realm of general licensing, where song usage in public spaces hangs in the balance. Aguirre peeled back the curtain on shady venues skipping out on their dues, shedding light on the music industry’s seedy underbelly.

Overall Breakdown of Publishing Income Streams

Unpackaging the treasure chest, the NMPA laid out the loot division for U.S. publishers and songwriters:

Songwriters

The glitz and glam of the soirée didn’t overshadow the real stars of the night — the song scribblers themselves. Honors rained down on Kacey Musgraves, Rhett Akins, Gracie Abrams, and Aaron Dessner, transcending the usual business chatter.