Reported 7 months ago
The National Music Publishers’ Association filed a complaint with the US Federal Trade Commission against Spotify over its decision to offer audiobooks to subscribers, leading to reduced royalty payments to songwriters. NMPA alleges that Spotify's bundling scheme, which automatically enrolled subscribers into a new offering without the choice to remain on a music-only tier, violates the law and could result in a $150 million drop in songwriter payments over the next year. This move has sparked conflict between Spotify and music publishers, prompting legal actions and a cease-and-desist letter from the NMPA. Spotify has defended its pricing strategy, stating that it informs users in advance of any changes and offers easy cancellations.
Source: YAHOO