Spotify Signs New Deal With BMG to 'Deliver Greater Value to Songwriters'
In a significant move, Spotify has signed a new direct licensing agreement with music publisher BMG, marking the latest development in the streaming service's efforts to improve songwriter remuneration. The multi-year deal, announced on [date], encompasses BMG's publishing side of the business and is expected to deliver greater value to songwriters and their teams.
According to a press release, the new agreement with Spotify will provide improved royalties for songwriters, building on previous deals struck by the streaming service with top music companies. This year alone, Spotify has signed agreements with Sony Music, Universal Music Group, Warner Music Group, Kobalt, and Merlin, all of which have aimed to increase songwriter remuneration.
BMG's CEO, Hartwig Masuch, said in a statement: "We are pleased to have reached this agreement with Spotify, which recognizes the value that songwriters bring to the platform. This deal is a significant step forward for our songwriters and their teams."
The new deal comes after a period of strained relations between Spotify and music publishers, dating back to March 2024 when the streaming service began paying less in premium royalties to songwriters and publishers in the U.S. The reduction resulted in a loss of $230 million in royalties in the first year, according to the National Music Publishers Association.
The move by Spotify to sign new deals with top music companies has been seen as an effort to improve its reputation among songwriters and publishers. In recent years, the streaming service has faced criticism over its payment practices, with many arguing that it does not fairly compensate creators for their work.
Industry experts say that the new deal with BMG is a positive development for songwriters, who have long advocated for fairer pay on streaming platforms. "This agreement is a step in the right direction," said one expert. "It shows that Spotify is willing to listen to the concerns of songwriters and make changes to improve their remuneration."
The current deal with BMG is expected to remain in place for several years, providing stability and predictability for songwriters and publishers. As the music industry continues to evolve, it remains to be seen whether other streaming services will follow Spotify's lead in signing similar deals.
In a statement, Spotify said: "We are committed to delivering greater value to our creators and this agreement with BMG is an important step towards achieving that goal."
*Reporting by Billboard.*
