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As predicted<\/a>, Spotify<\/a> has inked another key licensing agreement, this time with amra, the global digital licensing collection society.<\/p>\n Spotify\u2019s multi-territorial, multi-year renewal deal with amra covers digital mechanical<\/strong> and performing<\/strong> rights across amra\u2019s global footprint.<\/p>\n That footprint sees amra collect licensing royalties for its clients in an array of markets outside the United States, including Southeast Asia, India, Australia<\/strong>, Brazil<\/strong>, and Japan<\/strong>.<\/p>\n The new agreement follows Spotify\u2019s direct licensing deal<\/a> with Kobalt<\/a><\/b> last week, which covered only US operations.<\/p>\n Kobalt\u2019s<\/strong> catalog is globally licensed outside the US by amra. Indeed, amra<\/strong> is a sister company of Kobalt, representing both Kobalt\u2019s rights and those of third-party clients.<\/p>\n Alex<\/b> Norstr\u00f6m<\/b>, Co-President & Chief Business O\ufb03cer, Spotify, said: \u201cThis deal with amra increases our support of publishers and songwriters with new rights.<\/p>\n \u201cIt expands the benefits of streaming for writers, artists and rightsholders and unlocks additional value for fans as we deliver music around the world.\u201d<\/p>\n \u201cThis deal with amra increases our support of publishers and songwriters with new rights.\u201d<\/p>\n Alex<\/b> Norstr\u00f6m<\/b>, Spotify<\/span><\/p>\n<\/blockquote>\n \u201cIt expands the benefits of streaming for writers, artists and rightsholders and unlocks additional value for fans as we deliver music around the world.\u201d<\/p>\n In a media release confirming the partnership, Spotify and amra<\/strong> said their new deal is \u201cdesigned to deliver greater \ufb02exibility and value to amra\u2019s songwriter and publisher clients.\u201d<\/p>\n \u201cOur priority and mission at amra is and will always be to maximize the digital value for our songwriter and publisher clients and to ensure their works are protected and valued fairly in the marketplace.\u201d<\/p>\n Tomas Ericsson, amra<\/span><\/p>\n<\/blockquote>\n Tomas Ericsson<\/b>, CEO of amra, commented: \u201cOur priority and mission at amra is and will always be to maximize the digital value for our songwriter and publisher clients and to ensure their works are protected and valued fairly in the marketplace.<\/p>\n \u201cThis partnership with Spotify, which enables new innovation, reaffirms that commitment.\u00a0 <\/span>We look forward to continuing to work with Spotify over the coming years.\u201d<\/p>\n Spotify\u2019s direct licensing strategy<\/strong> in the US market \u2013 as seen with the new Kobalt deal \u2013 follows the company\u2019s controversial decision to reclassify<\/a> its Premium subscription tiers as \u201cbundles,\u201d which resulted in Spotify paying a lower mechanical royalty rate to publishers and songwriters in the United States.<\/a><\/p>\n Under a\u00a02022 legal settlement<\/a>\u00a0called Phonorecords IV<\/b>, music publishers and music streaming services agreed that \u2018bundle\u2019 services in the US are permitted to pay a lower mechanical royalty rate to publishers and songwriters than standalone music subscription services.<\/p>\n These concerns prompted the Mechanical Licensing Collective<\/b>\u00a0(MLC) to sue<\/a> Spotify in May 2024 for allegedly underpaying royalties to songwriters and publishers. The lawsuit was\u00a0dismissed<\/a>\u00a0in January, and the MLC\u00a0asked<\/a>\u00a0the court in February to reconsider the dismissal.<\/p>\n In June of this year, two US senators called on<\/a> the US Federal Trade Commission to investigate Spotify. Senators\u00a0Marsha Blackburn<\/b>, a Tennessee Republican, and\u00a0Ben Ray Luj\u00e1n<\/b>, a New Mexico Democrat,\u00a0sent a letter<\/a>\u00a0to\u00a0FTC Chairman\u00a0Andrew Ferguson<\/b>,\u00a0saying: \u201cWe have serious concerns about Spotify\u2019s recent move to convert all of its premium music subscribers into different\u2014and ultimately higher-priced \u2014 bundled subscriptions without their knowledge or consent.\u201d<\/p>\n Universal Music Publishing Group<\/a>\u00a0and\u00a0Warner Chappell Music<\/a>\u00a0have since signed direct licensing deals with\u00a0Spotify<\/b>\u00a0to override the bundling discount.<\/p>\n\n
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