Revenue / 04.22.24

Spotify’s Music-Audiobook Bundle Means a Lower Royalty Rate for U.S. Songwriters, but Company Promises Record Payouts

Access Staff

Variety (04/18/22) Aswad, Jem; Spangler, Todd

Spotify recently confirmed that its premium plans combining music and audiobooks will mean a lower mechanical royalty rate for songwriters on those plans. Officials, though, also claim that earnings for creators will continue to increase. A company statement read: "As our industry partners are aware, 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. Multiple [digital service providers, or DSPs] have long paid a lower rate for bundles versus a stand-alone music subscription, and our approach is consistent." That second sentence refers to plans offered by Apple, Amazon — which offers its music streaming as part of its Prime service — and others.

Read the full story from Variety.

Tags: Revenue , Spotify