{"id":1958275,"date":"2025-08-13T17:03:19","date_gmt":"2025-08-13T17:03:19","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=1958275"},"modified":"2025-08-13T17:03:19","modified_gmt":"2025-08-13T17:03:19","slug":"kobalt-inks-direct-licensing-deal-with-spotify-in-the-us","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/kobalt-inks-direct-licensing-deal-with-spotify-in-the-us\/","title":{"rendered":"Kobalt inks direct licensing deal with Spotify in the US"},"content":{"rendered":"<p><\/p>\n<div>\n<p><a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; Spotify [4,379 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/spotify\/\">Spotify<\/a> and <a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; Kobalt Music Group [785 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/kobalt-music-group\/\">Kobalt<\/a> have signed a direct, multi-year licensing agreement covering the United States.<\/p>\n<div class=\"mb-advert__uber\">\n<div id=\"uberad\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.musicbusinessworldwide.com\/jobs\/\" target=\"_blank\" rel=\"noopener\"><\/a><\/div>\n<\/div>\n<p>The agreement marks <strong>Spotify\u2019s<\/strong> latest direct deal with a prominent music publisher and moves its agreement with Kobalt beyond the traditional CRB model in the US.<\/p>\n<p>This means that <strong>Kobalt\u2019s<\/strong> direct deal supersedes<span style=\"margin: 0px; padding: 0px;\">\u00a0the audiobook <strong>\u2018<a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/us-senators-call-for-ftc-probe-into-spotifys-bundling-practices\/\" target=\"_blank\" rel=\"noopener\">bundling<\/a>\u2018 <\/strong>payment structure that, starting in March last year, saw Spotify dramatically cut the rate of mechanical royalties <\/span>paid to publishers and songwriters in the US.<\/p>\n<p>Since then, <a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/universal-music-group-spotify-royalty-discount-bundle-audiobooks\/\" target=\"_blank\" rel=\"noopener\">Universal Music Publishing Group<\/a> and <a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/warner-music-group-and-spotify-ink-new-deal-overriding-controversial-crb-bundling-payment-structure-in-the-us\/\" target=\"_blank\" rel=\"noopener\">Warner Chappell Music<\/a> have signed direct licensing deals with <strong>Spotify<\/strong> that override the <strong>CRB<\/strong> bundling discount.<\/p>\n<p><strong><a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; Sony [2,196 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/sony\/\">Sony<\/a><\/strong> <strong>Music<\/strong> <strong>Publishing<\/strong> is the largest outstanding player on <strong>SPOT\u2019s<\/strong> list of potential direct licensing deals. MBW understands that <strong>Spotify<\/strong> is currently in discussions with the company about a new deal.<\/p>\n<p><strong>Kobalt<\/strong> claims to be the world\u2019s largest independent music publisher, serving over <strong>1 million<\/strong> songs across 10 global offices.<\/p>\n<p>It represents songwriters including <strong>Roddy Ricch, Max Martin, Karol G, Andrew Watt, Stevie Nicks, Phoebe Bridgers, The Lumineers, Gunna, Justin Quiles, The Foo Fighters, Paul McCartney<\/strong>, and many more.<\/p>\n<p>According to today\u2019s announcement, the new arrangement between<strong> Kobalt and Spotify<\/strong> is \u201cdesigned to deliver greater flexibility, efficiency, value, and protections to songwriters in the US\u201d.<\/p>\n<p>The companies also said that it \u201creflects a broader shift toward licensing structures that allow songwriters to participate more directly in the value their work creates on streaming platforms\u201d.<\/p>\n<p>It won\u2019t have gone unnoticed that <strong>Spotify\u2019s<\/strong> latest deal with<strong> Kobalt<\/strong> is for the <strong>US only<\/strong>. Could a separate ex-US licensing agreement be forthcoming between <strong>SPOT and Kobalt<\/strong> \u2013 or Kobalt\u2019s sister global collection org, <strong><a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; AMRA [75 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/kobalt-music-group\/amra\/\">AMRA<\/a><\/strong>?<\/p>\n<p>Some of the specific language used in the official announcement of today\u2019s deal is worth paying attention to.<\/p>\n<p>Commenting on the deal, <strong>Alex Norstr\u00f6m<\/strong>, Spotify\u2019s Co-President &amp; Chief Business Officer explained that \u201cthis agreement with Kobalt boosts our support of songwriters through a licensing model that unlocks new growth and will <strong>expand the way music is made<\/strong> <strong>and shared<\/strong> today\u201d.<\/p>\n<p><strong>Norstr\u00f6m<\/strong> said: \u201cWe\u2019ve always believed that better partnerships lead to better outcomes.\u201d<\/p>\n<p>Spotify <a rel=\"nofollow\" target=\"_blank\" class=\"link-external\" href=\"https:\/\/www.theverge.com\/2024\/4\/12\/24128218\/spotify-music-remix-feature-sped-up-tiktok-songs\" target=\"_blank\" rel=\"noopener\">is rumoured<\/a> to be developing an AI-powered remix feature that would allow users to edit songs, including speeding up, slowing down, and mashing up tracks.<\/p>\n<p>Could that be what <strong>Norstr\u00f6m<\/strong> is referencing in his statement?<\/p>\n<blockquote>\n<figure class=\"mbw-articlepic mbw-articlepic--right\"><a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/files\/2025\/08\/Screenshot-2025-08-13-at-11.38.59.jpg\"><img class=\"lazyload\" srcset=\"https:\/\/www.musicbusinessworldwide.com\/files\/2025\/08\/Screenshot-2025-08-13-at-11.38.59-80x141.jpg 80w, https:\/\/www.musicbusinessworldwide.com\/files\/2025\/08\/Screenshot-2025-08-13-at-11.38.59-160x282.jpg 160w, https:\/\/www.musicbusinessworldwide.com\/files\/2025\/08\/Screenshot-2025-08-13-at-11.38.59-320x565.jpg 320w\" data-sizes=\"auto\"\/><\/a><\/figure>\n<p>\u201cThis agreement with Kobalt boosts our support of songwriters through a licensing model that unlocks new growth and will <strong>expand the way music is made<\/strong> <strong>and shared<\/strong> today.\u201d<\/p>\n<p><span style=\"color: #000000;\">Alex Norstr\u00f6m<\/span><\/p>\n<\/blockquote>\n<p>Also in today\u2019s press release, <strong>Spotify and Kobalt<\/strong> noted that their new licensing deal \u201creflects the collaborative efforts between [the two companies] in building a licensing framework to enable <strong>new formats<\/strong>, innovations, and potential to connect creators and fans alike\u201d.<\/p>\n<p>One particular \u201cnew format\u201d not yet available on Spotify in the US is <a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/spotify-expands-music-videos-to-85-new-markets\/\" target=\"_blank\" rel=\"noopener\">music videos<\/a>.<\/p>\n<p>The company initially <a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/spotify-challenges-youtube-launching-music-videos-for-premium-users-in-11-markets\/\" target=\"_blank\" rel=\"noopener\">launched<\/a> music videos in beta in March 2024 in 11 countries \u2013 the UK, Germany, Italy, the Netherlands, Poland, Sweden, Brazil, Colombia, the Philippines, Indonesia and Kenya. It later added Egypt to the list.<\/p>\n<p>The platform then expanded music video streaming to 85 new markets in October 2024, but the US wasn\u2019t included.<\/p>\n<p>If music videos are indeed one of the \u201cnew formats\u201d Spotify\u2019s statement refers to, a new licensing deal with <strong>Kobalt<\/strong> that covers music video usage in the US ahead of the format\u2019s probable launch there would make sense.<\/p>\n<p>(Also not irrelevant in terms of \u2018new formats\u2019: Just last week, <strong>Kobalt<\/strong>\u00a0<a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" href=\"https:\/\/www.musicbusinessworldwide.com\/eleven-music-new-ai-rival-to-suno-launches-with-merlin-kobalt-licensing-deals-in-the-bag\/\" target=\"_blank\" rel=\"noopener\">announced<\/a>\u00a0a landmark licensing agreement with <strong>ElevenLabs<\/strong>\u2019 new AI music platform, Eleven Music \u2013 a rival to Suno.)<\/p>\n<blockquote>\n<figure class=\"mbw-articlepic mbw-articlepic--right\"><img class=\"lazyload\" srcset=\"https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-80x100.jpeg 80w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-160x200.jpeg 160w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-320x400.jpeg 320w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-418x523.jpeg 418w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-648x810.jpeg 648w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-836x1045.jpeg 836w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/04\/HubertLaurent-Headshot-1296x1620.jpeg 1296w\" data-sizes=\"auto\"\/><\/figure>\n<p>\u201cAs the largest independent music publisher dedicated to fighting for the rights of songwriters, 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.\u201d<\/p>\n<p><span style=\"color: #000000;\"><a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"People &gt; Laurent Hubert [81 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/people\/laurent-hubert\/\">Laurent Hubert<\/a>, Kobalt<\/span><\/p>\n<\/blockquote>\n<p>Kobalt CEO<strong> Laurent Hubert<\/strong> commented on the new Spotify deal. \u201cAs the largest independent music publisher dedicated to fighting for the rights of songwriters, 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 platform.<\/p>\n<p>\u201cThis partnership is a step in the right direction, and we look forward to continuing to work with Spotify to increase the value of songwriter royalties.\u201d<\/p>\n<hr\/>\n<p class=\"whitespace-normal break-words\">Spotify\u2019s controversial \u201c<strong>bundling<\/strong>\u201d move in the US market is an important piece of context to today\u2019s story.<\/p>\n<p>A short history:<\/p>\n<ul>\n<li class=\"whitespace-normal break-words\">The move stemmed from a 2022 US <strong>Copyright Royalty Board<\/strong> ruling on statutory precepts called \u201c<strong>Phonorecords IV,<\/strong>\u201d which established that bundled multimedia services could pay a lower mechanical royalty rate than standalone music subscription services.<\/li>\n<li class=\"whitespace-normal break-words\">SPOT subsequently added audiobooks to its Premium music service and claimed this qualified as a \u201cbundle,\u201d allowing it to cut mechanical royalty payments to publishers and songwriters in the US.<\/li>\n<li class=\"whitespace-normal break-words\">The move began affecting payouts in Spring 2024. The decision attracted <a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" style=\"background-color: #ffffff;\" href=\"https:\/\/www.musicbusinessworldwide.com\/spotify-sued-by-the-mlc-for-cutting-pay-rate-to-songwriters-via-premium-bundles\/\" target=\"_blank\" rel=\"noopener\">legal action<\/a> from the Mechanical Licensing Collective (MLC), which filed a lawsuit against Spotify in May 2024, alleging the platform was illegally underpaying royalties to songwriters and publishers.<\/li>\n<li class=\"whitespace-normal break-words\">The MLC\u2019s lawsuit was <a rel=\"nofollow\" target=\"_blank\" class=\"link-internal\" style=\"background-color: #ffffff;\" href=\"https:\/\/www.musicbusinessworldwide.com\/spotify-wins-audiobook-bundling-lawsuit-as-court-dismisses-legal-action-brought-by-the-mlc\/\" target=\"_blank\" rel=\"noopener\">dismissed<\/a> in January 2025, with the court holding that the Premium Service is a bundle.<\/li>\n<li><strong><a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; Universal Music Group [4,204 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/universal-music-group\/\">Universal Music Group<\/a>,<\/strong>\u00a0<strong><a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; Warner Music Group [3,294 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/access-industries\/warner-music-group\/\">Warner Music Group<\/a><\/strong> and Kobalt now each have new private direct deals in the US with Spotify that override those statutory CRB rules going forward, therefore improving the mechanical royalty payments expected to flow from SPOT to those companies.<\/li>\n<\/ul>\n<p>Spotify, in its <a rel=\"nofollow\" target=\"_blank\" class=\"link-external\" style=\"background-color: #ffffff;\" href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001639920\/6484f860-9028-45cd-afd5-74b291b6890c.pdf\" target=\"_blank\" rel=\"noopener\">most recent Form 6-K filed with the SEC <\/a>last week for its Q2 financial results, pointed out that the MLC filed a request on April 1 to file an amended complaint alleging that the streaming company \u201cimproperly valued the components of the Premium Service bundle and improperly reported royalties for the Audiobook <a rel=\"nofollow\" target=\"_blank\" class=\"link-relationship\" title=\"Companies &gt; Access Industries [570 articles]\" href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/access-industries\/\">Access<\/a> Tier product\u201d.<\/p>\n<p>SPOT noted that \u201cthe MLC is entitled to appeal the original decision after the resolution of its new claims\u201d and that, \u201cif the MLC were to appeal and ultimately be entirely successful in its case, the additional royalties that would be due in relation to the period March 1, 2024 to June 30, 2025 would be approximately <strong>\u20ac256 million<\/strong>, plus potentially penalties and interest, which [SPOT] cannot reasonably estimate.\u201d<\/p>\n<p>That \u20ac256 million estimate works out to <strong>USD $290 million <\/strong>according to the average exchange rate for Q2 published by the European Central Bank.<span class=\"mb-article__stamp\">Music Business Worldwide<\/span><\/p>\n<\/div>\n<p><em> \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n<p><em> \u2018 Some details of this article were extracted from the following source www.musicbusinessworldwide.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spotify and Kobalt have signed a direct, multi-year licensing agreement covering the United States. The agreement marks Spotify\u2019s latest direct deal with a prominent music publisher and moves its agreement with Kobalt beyond the traditional CRB model in the US. This means that Kobalt\u2019s direct deal supersedes\u00a0the audiobook \u2018bundling\u2018 payment structure that, starting in March [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1958276,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25179],"tags":[],"class_list":["post-1958275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-music"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2025\/08\/Kobalt-inks-direct-licensing-deal-with-Spotify-in-the-US.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/1958275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=1958275"}],"version-history":[{"count":0,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/1958275\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/1958276"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=1958275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=1958275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=1958275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}