Spotify, NMPA Partner on Audiovisual Direct-Licensing Deal for Indie Publishers

Spotify and the National Music Publishers’ Association (NMPA) have launched a new Opt-In Portal for NMPA members to “enter into a direct license agreement for expanded audiovisual rights in the US.”

What it means:

• The streaming giant claims this means higher royalty payouts for independent music publishers and songwriters.

• In exchange, Spotify will receive new rights to build video features “that better connect artists and fans.”

• The Portal is open to eligible publishers now, with onboarding continuing through December 19.

Wider play:

• As Music Business Worldwide (MBW) points out, Spotify signed licensing deals with Universal Music Group, Sony Music and Warner Music Group earlier this year, and each announcement referenced audio-visual content.

• This agreement with the NMPA could signal that Spotify is looking to introduce music videos to its US users, a feature already available in 90+ markets globally.

Legal issues:

• MBW reports that this deal doesn’t resolve the ongoing dispute between US publishers and Spotify over its bundling of music and audiobook services in the US, which allows it to pay out lower mechanical royalty rates.

What they said:

• David Israelite, President and CEO, NMPA: “We are pleased that this deal offers indie publishers the chance to enter into direct deals with Spotify in regard to audiovisual streaming functionality on the platform alongside the recently announced larger publishing companies. This new income stream reflects the growing value of songs as digital platforms offer new capabilities to consumers.”

• Alex Norström, Co-President and Chief Business Officer, Spotify: “This new partnership with the NMPA will increase revenue for songwriters and independent publishers who are the heart of the industry. We look forward to continuing to work with the NMPA to create new value and opportunities for their members.”