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After announcing increased prices, Spotify to Pay Songwriters About $150 Million Less Next Year

www.billboard.com Spotify to Pay Songwriters About $150 Million Less Next Year With Premium, Duo, Family Plan Changes

Spotify will potentially pay songwriters about $150 million less in U.S. mechanical royalties next year after bundling its plans with audiobooks.

Spotify to Pay Songwriters About $150 Million Less Next Year With Premium, Duo, Family Plan Changes

When Bloomberg reported that Spotify would be upping the cost of its premium subscription from $9.99 to $10.99, and including 15 hours of audiobooks per month in the U.S., the change sounded like a win for songwriters and publishers. Higher subscription prices typically equate to a bump in U.S. mechanical royalties — but not this time.

By adding audiobooks into Spotify’s premium tier, the streaming service now claims it qualifies to pay a discounted “bundle” rate to songwriters for premium streams, given Spotify now has to pay licensing for both books and music from the same price tag — which will only be a dollar higher than when music was the only premium offering. Additionally, Spotify will reclassify its duo and family subscription plans as bundles as well.

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