AIMP Statement on Spotify's Music-Audiobook Bundle

26 April 2024 - Press release

The Association of Independent Music Publishers (AIMP) — including Michael Lau (National Chair and New York Chapter President), Marc Caruso (Los Angeles Chapter President), Ree Guyer (Nashville Chapter President), and Tony D. Alexander (Atlanta Chapter President) — issued the below statement on Spotify’s music-audiobook bundle.

“We are disappointed to learn that Spotify believes it should pay songwriters a lower royalty rate for music streams, by unilaterally bundling a service (audiobooks) for existing Premium subscribers who were not given an opportunity to ‘opt out’ of the offering. Spotify provided no advanced notification to music creators, rights holders, or music fans, and provided no clear explanation for its decision. Subscribers to the Premium service expect Spotify to pay songwriters their fair share of any royalties. Spotify’s decision shows a remarkable lack of appreciation for music rights holders and the value of music. Bundling devalues all media offered, not only music.

“Adding one dollar to the price of the new premier bundle tier will not have the effect of increasing the overall royalty pool for songwriters. Rather, by forcing the Premium tier to bundle audiobooks, Spotify either inadvertently- or intentionally – ends up devaluing music by creating a song royalty rate that decreases by more than 40%. This directly contradicts the spirit of the CRB Phono IV rates that were painstakingly negotiated only a few of years ago. We, the indie music publishers and songwriters, thought we had a promising future with Spotify as a partner.

“We support and join with our sister organizations to speak out against the unfair reclassification of the new Premium bundle tier.

“At the least, we hope that Spotify will properly alert its subscribers of the change and inform subscribers that they may switch from their current Premium subscription to the new Basic tier. At the Basic tier, songwriters will be paid the settled streaming mechanical rate that had been established during the CRB Phono IV proceeding, and by many standards, was already far too low.