Spotify and Kobalt strike new US licensing deal to support songwriters
The multi-year partnership promises fairer payouts and fresh opportunities for US songwriters.
Spotify has just signed a multi-year licensing deal with Kobalt, who claim to be the world’s largest independent music publisher. The agreement covers the US market and is designed to give songwriters more value and stronger protections.
A win for songwriters
The deal looks to strengthen Spotify’s commitment to songwriters, following earlier licensing deals made earlier this year with Warner Music Group and Universal Music Publishing Group.
Kobalt represents some impressive artists, including Roddy Ricch, Max Martin, FINNEAS, Karol G, Andrew Watt, Stevie Nicks, Phoebe Bridgers, The Lumineers, Gunna, Justin Quiles, The Foo Fighters, Paul McCartney, and many more. For them, this move signals a solid step forward for fair compensation and more opportunities.
Why this matters
Central to the agreement is Spotify’s audiobook bundling issue. Introduced last year, the bundling allowed Spotify to lower mechanical royalty rates paid to publishers and songwriters. Under the new deal, US songwriters represented by Kobalt should now see better royalty payouts.
“This deal reaffirms our unwavering commitment to ensuring our songwriters are paid fairly for their work, and underscores the importance of progressive licensing models that reflect the real-world use of music across digital platforms.”
Laurent Hubert, CEO of Kobalt
More than just better royalties
Interestingly, Spotify hints that the deal could also pave the way for new formats and innovations. This could open the door for more opportunities that could be integrated into the platform’s long-rumoured “super-premium” tier, with AI remixing tools being reported as part of a broader Streaming 2.0 push.
“This agreement with Kobalt boosts our support of songwriters through a licensing model that unlocks new growth and will expand the way music is made and shared today.”
Alex Norström, Co-President & Chief Business Officer at Spotify
The takeaway
While the final details aren’t public, this partnership sends a clear message: Spotify and Kobalt are working to ensure US songwriters get a better deal. With potential opportunities on the horizon, it shows Spotify’s ongoing commitment to continually improving its platform for artists and fans alike.
If you’re an independent artist, songwriter or publisher, now is the time to make sure you’re collecting all the royalties you deserve. With RouteNote Publishing, you can start collecting royalties on the compositions you’ve written. Find out if you’re eligible for RouteNote Publishing today.