Music publishers accuse Spotify of 'bait-and-switch subscription scheme'

Spotify has once again drawn the ire of the music industry. The National Music Publishers' Association has called on the Federal Trade Commission to examine the streaming service's addition of audiobook content into all of its paid subscription plans. According to the group's FTC complaint, Spotify's recent actions are part of "a scheme to increase profits by deceiving consumers and cheating the music royalty system." This requires some backstory. In November 2023, Spotify announced that it would include 15 hours of audiobook content as part of all its Premium subscription plans. A few months later, the company unveiled a new audiobook-only subscription, offering the same number of listening hours for $10 a month. The publishers' organization claims that Spotify's recent price increases are based on offering that extra audiobook content, and that paying customers are automatically being charged for a service they didn't choose and can't opt out of without switching to the free, ad-supported listening experience. And the additional revenue from the higher Premium subscription costs may not go to the music composers. According to the FTC complaint, Spotify will pay about $150 million less in music royalties over the first year of these new bundled Premium plans. The NMPA letter goes so far as to call the new audiobook-only plan "a sham" that "exists solely to allow Spotify to claim that audiobook content is a significantly and independently valuable aspect of its 'bundled'... Continue reading at 'Engadget'

[ Engadget | 2024-06-12 23:52:55 UTC ]
News tagged with: #deceiving consumers #company unveiled #listening hours #organization claims #paying customers #additional revenue #$150 million #nmpa letter #exists solely #early stage #planned overhaul #royalty model #routinely criticized #streaming ecosystem #audiobook

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