Spotify Signs Direct Licensing Deal with Kobalt

Kobalt Music Group, the world's largest independent publisher, has signed a direct, multi-year licensing agreement with Spotify. This new deal puts the Kobalt catalog outside the bundling payment structure that allows Spotify to cut mechanical royalties to songwriters and publishers.

Spotify direct deals:

• Major label publishers Universal Music Publishing Group and Warner Chappell Music have signed similar deals, also putting them outside the bundle payment structure.

• Music Business Worldwide reports that Spotify is in talks with Sony Music Publishing, the third major label publisher, to ink the same kind of deal.

• Kobalt’s deal with Spotify covers the United States. Thus, it may exclude Kobalt’s European sister platform, AMRA.

• The bundling structure is a result of a 2022 legal decision entitled “Phonorecords IV,” which stated that companies that offer bundled services, like Spotify’s recent inclusion of audiobooks in premium subscriptions, are legally permitted to pay lower royalty rates.

What they said:

• Kobalt CEO Laurent Hubert: “As the largest independent music publisher dedicated to fighting for the rights of songwriters, this deal reaffirms our unwavering commitment to ensuring our songwriters are paid fairly for their work, and underscores the importance of progressive licensing models that reflect the real-world use of music across digital platforms. This partnership is a step in the right direction, and we look forward to continuing to work with Spotify to increase the value of songwriter royalties.”

• Alex Norström, Spotify’s Co-President & Chief Business Officer: “This agreement with Kobalt boosts our support of songwriters through a licensing model that unlocks new growth and will expand the way music is made and shared today."