Music Publishers File FTC Complaint Against Spotify For ‘Fraudulent Business Practices’

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The National Music Publishers Association filed an FTC complaint against Spotify over the streaming giant's controversial audiobook bundling strategy.

over the streaming giant’s controversial audiobook bundle offering that’s led to decreased royalties for songwriters, with the trade group calling the strategy “a scheme to increase profits by deceiving consumers and cheating the music royalty system.”— during his speech for the trade group’s annual meeting in New York on Wednesday afternoon, over what he called “Spotify’s unfair, deceptive and fraudulent business practices.

The NMPA’s dispute with Spotify began several months ago, when Spotify added audiobooks to its premium subscription tier and offering the music and books as a bundle. That move carries significant weight in the complex world of music publishing royalties. The move has been predictably unpopular among songwriter groups, who’ve said Spotify is acting in bath faith from negotiations they previously set with the publishers in the CRB hearings. The Mechanical licensing Collective, the organization responsible for collecting mechanical royalties for songwriters since the Music Modernization Act passed in 2018, sued Spotify over the bundle in May.

“For anyone who thinks that this is overkill, welcome to our version of a bundle,” Israelite said in his speech Wednesday. Spotify does have an exit ramp, they can reverse course. Based on the past I have no expectation that will happen. But it is not too late for them to do the right thing.”Rob Schneider Booted Mid-Set From Another Stage After Attendees Walk Out

 

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