Senators Criticize Spotify’s Music Bundles
The Senators Marsha Blackburn and Ben Ray Luján have criticized Spotify’s music-audio bundles, which lower the license fees for songwriters and music publishers by hundreds of millions of dollars a year. In a letter published on Friday, the senators asked the Federal Trade Commission to examine the streaming giant.
The Plan and Its Effects
The plan, which started last year, significantly reduces the license payments to songwriters and publishers by automatically changing users into a plan that bundles music with popular audio books on the platform. This change is made without the users’ knowledge or consent, and it also entitles the company to a lower mechanical license fee in the United States. The senators argue that these actions harm consumers and could deeply damage the marketplace and the music license system.
Harm to Consumers and the Music Market
The senators believe that Spotify’s actions are unfair to both consumers and the music industry. By automatically changing users’ plans and increasing the subscription fee, Spotify is taking advantage of its users and reducing the payments to songwriters and publishers. The National Music Publishers Association estimates that this plan costs songwriters and publishers around $230 million last year.
Spotify’s Response
In response to the criticism, a representative of Spotify referred to the company’s statement on the plan, which claims that the approach of expanding the offer and increasing prices is an industry standard. However, the senators disagree, arguing that the bundled premium plans are aimed at increasing Spotify’s profits while lowering the license fees to the creative community.
Call to Action
The senators have asked the Federal Trade Commission to examine the effects of Spotify’s recent measures and take steps to protect Americans from subscriptions without notice or selection. They also want to protect the music market from Spotify’s harmful practices. The news was first reported by Billboard, and it remains to be seen how the Federal Trade Commission will respond to the senators’ concerns.
