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Senators urge FTC to investigate Spotify’s higher-priced bundled subscription
- U.S. Senators request the FTC to investigate Spotify for bundling music and audiobook services into a pricier subscription without user consent and reducing royalty payments to creators.
- Senators Marsha Blackburn and Ben Ray Luján allege Spotify of converting premium subscriptions to costlier bundled subscriptions without informing customers.
- Spotify's actions are seen as an attempt to lessen statutory royalties to songwriters and music publishers, harming the creative community and consumers.
- Mechanical Licensing Collective (MLC) previously sued Spotify for undercompensating songwriters and publishers.
- In 2024, Spotify upgraded Premium tiers with 15 hours of audiobooks, increasing costs to $12 for individuals and $20 for families, requiring users to opt out manually.
- Publishers reportedly lost $230 million in the first year due to this restructure, as per the National Music Publishers' Association.
- Spotify mentioned notifying users in advance of the price change and offering easy cancellations and multiple plan options.
- The letter to the FTC emphasizes concern over Spotify's bundled subscriptions impacting creators and consumers.
- The lawsuit against Spotify by MLC was dismissed in January.
- U.S. regulations allow reduced music royalty rates for bundled subscriptions with other services.
- Senators Blackburn and Luján aim to address Spotify's alleged lack of transparency and effects on the creative industry.
- The FTC has been urged to investigate Spotify's practices regarding subscription bundling and their financial consequences.
- Spotify spokesperson mentions prior notification to users and flexibility in subscription plans.
- The situation reflects ongoing concerns over fair compensation for artists and the impact of subscription changes.
- The allegations against Spotify highlight the complex relationship between streaming platforms, royalties, and user consent.
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