Spotify and BMG Sign Multiyear US Direct Publishing Licensing Deal

Spotify has partnered with BMG Rights Management, the international music company, for a multiyear publishing licensing deal. This adds to a series of deals that Spotify has made with other publishers, including Sony, Universal, Warner, Kobalt, and Merlin.

The deal:

• The agreement with BMG will be outside the Copyright Royalty Board’s traditional structure, just as with the other deals with major publishers.

• Spotify has stated that payouts will increase for publishing rights holders via the terms of the direct licensing deal on top of the standard payouts from the overarching mechanical license provided by the Mechanical Licensing Collective.

• These recent publishing deals have sprouted in response to Spotify’s audiobook bundling structure, which legally allowed for lower payouts in the US when Spotify became a bundled service rather than a solely music streaming service.

What they said:

• Alex Norström, Co-President & Chief Business Officer, Spotify: “At Spotify, we believe the future of music depends on stronger collaboration across the industry. Our partnership with BMG advances that vision with renewed support for songwriters through a licensing model that will enhance how music is enjoyed on our platform.”

• Thomas Coesfeld, CEO of BMG: “Working directly with Spotify helps us reinforce our mission to ensure songwriters are fairly represented and rewarded for their work. We’re pleased to agree on a progressive licensing model that reflects the real-world use of music across digital platforms and are excited to take our partnership to the next level as we continue to redefine what a modern music company can be.”