Spotify Signs New Deal With BMG to ‘Deliver Greater Value to Songwriters’

BMG and Spotify have announced the signing of a new direct licensing agreement. Specifically, this multi-year deal encompasses BMG’s publishing side of the business, and the new agreement with Spotify is said to “deliver greater value to songwriters and their teams,” according to a press release.

This is the latest in a series of new deals struck between Spotify and top music companies. Already this year, new Spotify agreements have been struck with Sony Music, Universal Music Group, Warner Music Group, Kobalt and Merlin — most of which have improved songwriter remuneration on the streaming platform.

It’s a notable part of the pacts, given Spotify has had strained relations with music publishers since the spring of 2024. That March, the streaming service started paying less premium royalties to songwriters and publishers in the U.S., leading to a reduction of $230 million in royalties in the first year, according to the National Music Publishers’ Association. The service was able to cut royalties because it argued that by adding audiobooks into its premium service, it now qualified all premium subscriptions as “bundles.” In the U.S. this allows services to split the mechanical royalty pool between the types of content within the bundle — in this case, songs and books.

In a press release about BMG and Spotify’s new agreement, it reads: “It’s a practical step toward a more flexible licensing model that better serves both publishers and their artists, ensuring BMG songwriters benefit more directly in the growth of streaming.”

“At Spotify, we believe the future of music depends on stronger collaboration across the industry,” says Alex Norström, co-president and chief business officer at Spotify. “Our partnership with BMG advances that vision with renewed support for songwriters through a licensing model that will enhance how music is enjoyed on our platform.”

Thomas Coesfeld, CEO of BMG, says of the deal: “Working directly with Spotify helps us reinforce our mission to ensure songwriters are fairly represented and rewarded for their work. We’re pleased to agree on a progressive licensing model that reflects the real-world use of music across digital platforms and are excited to take our partnership to the next level as we continue to redefine what a modern music company can be. We applaud their momentum and support their position on developing new AI protections. While we support the use of AI to enhance human creativity, these policies align with BMG’s philosophy and will help ensure that fair remuneration and protection of artists’ works remain non-negotiable.”