Multiple US-based publishers are reporting a significant 30-40% drop in Spotify mechanical royalties for January 2025, specifically for plays from October 2024. This unexpected decline appears to be Spotify-specific and isn't occurring on other digital streaming platforms (DSPs).

Key findings:

• The decline affects US-based mechanical publishing royalties
• Performance royalties showed an unusual increase during the same period
• The drop appears consistent across artists, genres, and regions
• No publishers reported changes in royalty calculations or usage patterns
• Royalties are processed through the Mechanical Licensing Collective (MLC)

Important context:

Recent data shows that music-only, non-bundled Spotify subscriptions now represent less than 1% of all US-based subscriptions. This is significant because bundled plans typically generate lower mechanical royalties for publishers and songwriters.

Current status:

• Spotify has been contacted but hasn't issued an official statement
• The issue may be due to an accounting error or methodology change
• Investigation is ongoing to determine the root cause

This development warrants attention from industry professionals, particularly those involved in music publishing and royalty accounting. Updates will be provided as more information becomes available.

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