×
You will be redirected back to your article in seconds

Spotify to Pay More Than $20 Million to Music Publishers in Royalty Pact for ‘Unmatched’ Songs

Spotify has reached a deal with the National Music Publishers Association that will let copyright owners claim royalty payments from the streaming-music service for songs lacking ownership information.

Financial terms of the pact were not disclosed. The deal will let publishers and songwriters identify their works and receive money Spotify has set aside for the past usage of so-called unmatched works. In addition, under the agreement Spotify will establish a larger bonus compensation fund for unmatched royalties.

[UPDATED, March 18, 11 a.m. ET: Spotify will pay more than $20 million — and as much as $25 million — to music publishers under the agreement, a source familiar with the deal said. In addition, Spotify is setting aside a pool of $5 million for its past unauthorized use of unmatched songs, the source said. The New York Times previously reported details of the payments.]

“We must continue to push digital services to properly pay for the musical works that fuel their businesses and, after much work together, we have found a way for Spotify to quickly get royalties to the right people,” NMPA president and CEO David Israelite said.

Spotify has had a sometimes rocky relationship with the music industry over the economics of the service. Most famously, Taylor Swift pulled her albums off Spotify more than a year ago because she claimed the company was paying paltry royalty fees.

Under the pact between Spotify and NMPA, any royalties associated with works that remain unmatched after each claiming period will be distributed to publishers and songwriters who participate in the settlement (based on usage on Spotify). However, the agreement will not affect royalties owed to any publisher or writer who does not choose to participate.

“As we have said many times, we have always been committed to paying songwriters and publishers every penny,” Spotify global head of communications and public policy Jonathan Prince said. “We appreciate the hard work of everyone at the NMPA to secure this agreement, and we look forward to further collaboration with them as we build a comprehensive publishing administration system.”

More Digital

  • Apple-TV-subscription-streaming-event

    Apple TV 'Show Time' Event: How to Watch Live-Stream

    Monday is the coming-out party for Apple’s Hollywood ambitions: After years of trademark secrecy about its plans to stream into video entertainment, the tech giant is set to pull back the curtain at a media event. The live program kicks off at 10 a.m. PT / 1 p.m. ET, on Monday, March 25, from the [...]

  • Google Stadia is a Net Neutrality

    Google Stadia is a Net Neutrality Nightmare

    At the Game Developers Conference (GDC) this year, Google announced that it has taken up the long and ever-lengthening dream of the video game streaming service. Meant to replace the hefty, pricey, altogether confounding experience of buying and using various gaming hardware, Google Stadia will run video games on Google’s own hardware in a server [...]

  • crunchyroll logo

    Crunchyroll Raises Subscription Price to $7.99

    AT&T-owned anime subscription video service Crunchyroll is raising its monthly subscription price from $6.95 to $7.99 a month, it announced in an email to members Friday. It’s the service’s first price increase ever, according to a spokesperson. The new pricing will go into effect on May 1 for new subscribers, while existing members will see [...]

  • StyleHaul

    StyleHaul Shuts Down U.S. Operations, Lays Off About 65 Employees

    The axe is falling on StyleHaul: The fashion, beauty and lifestyle digital media and marketing company owned by RTL Group is shuttering U.S. operations, resulting the layoff of around 65 employees. StyleHaul offices in L.A., with about 55 employees, and in New York City, with around 10 staffers, are closing. RTL said StyleHaul’s U.K. operations, [...]

  • Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown, a leading platform for letting music fans know about upcoming concerts by their favorite artists, has acquired Hypebot, a news site publishing stories about the music industry and technology, and its sister site MusicThinkTank. “I’m proud to share that Hypebot and MusicThinkTank have been acquired by Bandsintown,” wrote Bruce Houghton, the founder of the [...]

  • Vertigo Games Believes ‘Location-Based Virtual Reality’

    Vertigo Games Believes ‘Location-Based Virtual Reality’ Is Future of VR

    As virtual reality becomes more and more available, many developers are looking for new frontiers to expand the experiences offered by the tech. For Netherlands-based Vertigo Games, that next frontier is what they call “location-based virtual reality.” It’s essentially high-quality VR experiences where players aren’t tethered to a PC or even to the confines of [...]

More From Our Brands

Access exclusive content