Spotify's latest royalty statements reveal a dramatic shift towards bundled subscriptions, significantly impacting publisher payouts. According to confidential documents shared with Digital Music News, approximately 97% of Spotify subscription accounts in the United States are now categorized as bundles, resulting in lower mechanical royalty rates.

Key Findings from March 2024 Statements:

• Over 20 million Individual subscriber accounts transitioned to bundled plans
• Nearly 100% of Family and Duo plans are now bundled
• Only 869,912 Individual accounts remain non-bundled
• Duo accounts increased to 4.17 million (from 3.86 million in February)
• Family accounts rose to 5.65 million (from 5.27 million in February)

Financial Impact:

• Annual royalty decline now estimated at over $160 million
• Spotify stands to gain $500+ million annually from recent price increases
• Publishers expected to receive minimal share of these gains

Industry Response:

• NMPA chief David Israelite describes it as a "war on songwriters"
• MLC filed lawsuit challenging bundling reclassifications
• NMPA lodged complaints with FTC and state attorneys general
• Push for federal legislation to allow direct publisher negotiations

Spotify's Position:

• Company defends bundling as industry standard
• Plans to contest all legal and legislative challenges
• May introduce music-only option in US for $1 less monthly
• Continues to notify users of price changes and plan options

Note: Figures are preliminary and subject to final confirmation. The situation continues to develop as legal challenges proceed.

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