Spotify and BMG sign direct US publishing licensing deal

Announced on 8 October, the deal aims to deliver increased value for songwriters and their representatives, marking Spotify’s latest direct partnership with a major music publisher in the US market.

The agreement follows a series of similar deals struck by Spotify in recent months. In September, the streaming service signed a direct US licensing deal with Kobalt, while earlier this year it concluded separate arrangements with Universal Music Publishing Group (UMPG), Warner Chappell Music, and Sony Music Publishing.

Under the new framework, pay-outs to songwriters and publishers will include both remuneration from Spotify’s direct licensing agreement and the statutory payments they receive through the Mechanical Licensing Collective (MLC). According to Spotify, this approach is expected to yield higher overall royalties than those provided solely under the MLC’s audiobook bundle payment system.

That previous audiobook bundle structure, introduced in March 2024, significantly reduced the rate of mechanical royalties paid to publishers and songwriters in the US, prompting industry concern.

In a joint statement, Spotify and BMG said the new deal represents “a practical step toward a more flexible licensing model” and aims to ensure songwriters benefit more directly from streaming growth.

Spotify’s co-president and chief business officer, Alex Norström, said the agreement reflects the company’s commitment to strengthening collaboration across the music industry. “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,” he said.

BMG CEO Thomas Coesfeld said the deal reinforces the company’s goal of ensuring fair representation and reward for songwriters. He described the model as “progressive” and aligned with real-world music consumption across digital platforms. Coesfeld also expressed support for Spotify’s stance on developing artificial intelligence protections, noting that such policies align with BMG’s approach to safeguarding artists’ rights and ensuring fair remuneration.

BMG’s new agreement follows its 2023 decision to bring digital and streaming operations in-house, giving the company greater control over platform relationships, data use, and catalogue management. The move came shortly after Coesfeld assumed leadership as CEO.

The company recently appointed Monti Olson to lead its North American publishing operations, with a focus on signings and catalogue acquisitions. Speaking after BMG’s mid-year results, Coesfeld said publishing would remain the company’s main revenue driver, with continued investment in its global operations as streaming markets expand.