# NMPA Projects $3.1B Loss From Spotify… | Dynamoi News

Canonical URL: https://dynamoi.com/news/2025-06-16-nmpa-projects-dollar31b-loss-from-spotify-bundling-through-2032.html

Source: Dynamoi static public site

Description: Music publishers warn streaming bundling practices could cost songwriters over $3 billion through next royalty period.

Dynamoi News NMPA Projects $3.1B Loss From Spotify Bundling Through 2032 Music publishers warn streaming bundling practices could cost songwriters over $3 billion through next royalty period. Published June 16, 2025 Editor Trevor Loucks Editorial policy → The National Music Publishers' Association dropped a bombshell at its annual meeting Wednesday: Spotify's audiobook bundling strategy will cost songwriters and publishers $3.1 billion through 2032. The trade organization revealed that Spotify's decision to reclassify Premium subscriptions as audiobook bundles has already cost the industry $230 million in its first year alone. Why it matters: This represents the largest financial threat to music publishing revenues since the streaming transition began. Scale impact: The $3.1 billion projection covers the next Copyright Royalty Board period through 2032. Precedent concern: Amazon has already followed Spotify's lead, causing a 40% revenue drop from that platform. Legal complexity: The bundling exploits regulatory loopholes in mechanical royalty calculations. Zoom in: The bundling mechanics Under the 2022 Phonorecords IV settlement, bundled services pay significantly lower mechanical royalty rates than standalone music subscriptions. Spotify's individual plan mechanicals dropped from $15.78 million in February to $9.58 million in March 2024—the month bundling launched. Industry ripple effects Sony Music Publishing reports mechanical payments from Spotify fell 20% since bundling began. Over 44 million Spotify subscribers were reclassified as bundle users without requesting the change. By the numbers: $230 million lost in first year of Spotify bundling $3.1 billion projected losses through 2032 if practice continues 40% revenue decrease from Amazon after its bundling launch 72% of U.S. publishing income operates under "burdensome regulations" The catch: Legal challenges have so far failed to stop the practice. A federal judge dismissed the Mechanical Licensing Collective's lawsuit against Spotify in January, ruling the bundling regulations were "unambiguous." The NMPA admits that despite initial optimism about Amazon's "respectful" approach, that platform's bundling has also hurt publisher revenues. What's next: The Phonorecords V proceedings at the Copyright Royalty Board will determine mechanical rates for 2028-2032, making the next six months critical for the industry. NMPA CEO David Israelite called for unprecedented industry unity: "There has never been a greater need to stand up for the value of songwriters." The organization is also targeting B2B music services, sending cease and desist letters to six companies allegedly using unlicensed music. The bottom line: Streaming platforms have found a legal way to dramatically reduce songwriter payments through product bundling. With Amazon following Spotify's playbook and more platforms likely to follow, the window for publishers to secure fair compensation is rapidly closing. Related stories Spotify Rolls Out $10.99 Basic Tier Amid $150M Royalties Dispute May 29, 2026 Apple Inks $500M Generative AI Training Pact With Warner Music May 9, 2026 Spotify Opposes MLC Appeal in Battle Over $150M Royalties January 14, 2026 Major Publishers Bypass MLC After Spotify Defends $230M Bundle Cut May 9, 2026 Latest News May 30, 2026 Warner Music Settles $24M Copyright Suit With Crumbl May 29, 2026 UMG Board Unanimously Rejects Bill Ackman’s $64B Takeover Bid May 29, 2026 Spotify Rolls Out $10.99 Basic Tier Amid $150M Royalties Dispute May 28, 2026 Sony Weaponizes 2024 AI Opt-Out in 61,000-Track Suno Lawsuit May 27, 2026 33 States Demand Ticketmaster Divestiture After Antitrust Verdict May 26, 2026 Spotify Shares Surge 16% on UMG Deal for Paid AI Remix Tools See pricing →