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

variety.com:

Spotify’s premium plans combining music and audiobooks will mean a lower mechanical royalty rate for songwriters on those plans, the company has confirmed, although it claims that earnings for creators will continue to rise.“Spotify is on track to pay publishers and societies more in 2024 than in 2023.

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,” the statement reads. “Multiple DSPs have long paid a lower rate for bundles versus a stand-alone music subscription, and our approach is consistent.” The final sentence is in reference to plans offered by Amazon — which offers its music streaming as part of its Prime service — Apple and others.

Spotify unpacks details on the nearly $4 billion it has paid to music publishers representing songwriters over the past two years in the “Loud and Clear” section of its website.

The move reflects a reordering of the company’s plan offers. On March 1, Spotify introduced the Audiobooks Access Tier, a new standalone offering for audiobook enthusiasts in the U.S.