BMG is the latest publisher to agree a progressive licensing model towards fairer royalties and stronger protections for songwriters.

Spotify and BMG join forces

Spotify and BMG have announced a new multiyear, direct US publishing licensing deal. The deal is aimed to give songwriters greater value for their work.

The partnership looks to build on both companies’ shared goal to ensure songwriters share more directly in the value their music generates. It’s part of Spotify’s growing series of direct licensing agreements, following similar deals with Universal Music Group, Warner Music Group, Kobalt, Sony Music Group, and Merlin. Each of these is aimed at creating fairer, more transparent models for artists and songwriters.

“Our partnership with BMG advances that vision with renewed support for songwriters through a licensing model that will enhance how music is enjoyed on our platform.”

Alex Norström, Co-President and Chief Business Officer of Spotify

A progressive move for songwriters

While the finer details of the deal remain under wraps, the new deal is expected to resolve the bundling loophole that Spotify was allegedly exploiting. If you’re not aware, Spotify was accused of using this controversial tactic to reduce what it paid to songwriters and publishers by The Mechanical Licensing Collective (MLC). 

After the court initially dismissed The MLC’s case back in February, the case was reopened last month as The MLC amended its case according to CMU. So, the issue remains a hot topic in the music business. With that being said, this new direct deal could be a way for Spotify and BMG to move forward with a cleaner, fairer system.

Stronger protections and shared values

BMG’s CEO Thomas Coefold praised Spotify for its recent protection measures against AI misuse. While both companies believe that AI can enhance human creativity, they also believe that AI developments shouldn’t come at the cost of fair remuneration and artist protections.

“We’re pleased to agree on a progressive licensing model that reflects the real-world use of music across digital platforms and are excited to take our partnership to the next level as we continue to redefine what a modern music company can be.”

Thomas Coesfold, CEO of BMG

Spotify’s Co-President and Chief Business Officer, Alex Norström, echoed that sentiment, calling the deal a reflection of Spotify’s ongoing commitment to improving how songwriters are supported on the platform.

Spotify strengthens protections against AI misuse in music

Why it matters for the music industry

This deal isn’t happening in isolation. Spotify has been penning new deals with other publishers throughout the past year, setting a precedent for how streaming platforms and publishers can work together to make sure the people behind the music are fairly compensated.

In short, this could mark a big step towards a fairer, more modern licensing ecosystem that truly supports the artists and songwriters at the heart of the Spotify experience.

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