In a timeline provided by Billboard, the ongoing feud between the music industry and Spotify over bundling is detailed. The conflict began when Spotify started paying music publishers and songwriters a discounted royalty rate for streams on its premium tiers. This change was estimated to result in songwriters and publishers earning around $150 million less in royalties for the first year of bundling. The move was met with backlash from music organizations such as the Recording Academy and the NMPA, who expressed their opposition to the change.
The Mechanical Licensing Collective (the MLC) responded to Spotify's decision by filing a lawsuit, arguing that the premium tiers had been improperly characterized as bundles. In August 2022, the NMPA, NSAI, and DiMA reached a voluntary settlement to establish the rates for Phonorecords IV, the U.S. mechanical royalty rate for 2023-2027. This settlement included a lower rate for bundling services.
In March 2024, Spotify made the unilateral and unlawful decision to reduce the Service Provider Revenue reported to the MLC for Premium by nearly 50 percent. Additionally, Spotify is reportedly raising the price of premium subscriptions in certain markets. These actions have drawn criticism from various music publishing and songwriter organizations, who have issued statements against Spotify's move to pay songwriters and publishers less in U.S. mechanicals.
The NMPA has taken legal action against Spotify, sending a cease and desist letter to the streaming platform for allegedly hosting lyrics, music videos, and podcast content without proper licenses. The MLC has also filed a lawsuit against Spotify, alleging that the company has improperly classified its premium tiers as bundles. The timeline provides a comprehensive overview of the events and statements made by the involved parties, shedding light on the ongoing feud between the music industry and Spotify over bundling.
[Billboard](https://www.billboard.com/lists/timeline-spotify-publishers-songwriters-bundling-feud/)
Image Source: [Billboard](https://www.billboard.com/wp-content/uploads/2024/02/spotify-phone-app-billboard-1548.jpg?w=1024)