Music News & Updates
An Analysis of the Mechanical Licensing Collective v. Spotify Suit (digitalmusicnews.com)
What Are the MLC’s Arguments Against Spotify’s Bundling Reclassification? Here’s a Quick Breakdown
The MLC’s complaint against Spotify followed firmly worded criticism from multiple organizations – including a cease-and-desist letter sent by the National Music Publishers’ Association. In brief, the pushback targeted the formal reclassification of Spotify’s main $10.99-per-month individual plan (along with Duo and Family) as a bundle. This move, set in motion after Spotify quietly rolled out a $9.99-per-month audiobook-only plan, might appear insignificant at a glance. But it’s having major mechanical-royalty implications in the States; the bigger-picture effects of the pivot, we explored in detail, remain to be seen. Once again in the interest of brevity, under the Phonorecords IV determination, Spotify pays stateside mechanicals at a rate of 26.2% of “total content cost” for any music-only plan – against 24.5% for bundles.
Music News & Updates