Newly married Spotify Chief Executive Daniel Ek is coming around to the idea of compromise.
The streaming leader is discussing making some new music available only to paying subscribers in hopes of ending a months-long impasse with the major record companies, The Post has learned.
The recent change of heart for Ek — who said “I do” to Sofia Levander in lavish nuptials over the weekend in Italy’s Lake Como — stems from a desire to make Wall Street happy, sources said.
As part of its negotiations, Spotify wants to lower its revenue split and make its finances more attractive to potential investors.
Spotify wants to hand over less than 50 percent of its revenue to the labels, sources say. Right now, it pays them as much as 58 percent of revenue.
“There are two things being discussed — windowing and rates. It’s a bit of ‘we’ll compromise if you compromise,’ ” said a source familiar with talks. “They’re tech people and they want to get rich.”
This is what happens when a tech company adopts a “seek forgiveness” licensing policy.
Spotify is now being threatened with another major lawsuit, this time from a totally different group of publishers.
The following is a developing story exclusive to Digital Music News. Please check back for ongoing updates.
Spotify is now being threatened with yet another major lawsuit, this time from a group of indie music publishers demanding unpaid mechanical royalties. According to sources either close to the situation or involved with one or more of the publishers, the collective of publishing companies is unhappy with a recent settlement agreement with Spotify structured by the National Music Publishers’ Association (NMPA), one viewed as overly-lenient and designed to accommodate the interests of only the largest publishing conglomerates.
The indie publishing group is also unwilling to join a songwriter-focused class action lawsuit against Spotify, first lodged last year and carrying potential damages of $200 million.
The collective of potential litigators currently comprises 4-5 publishing groups, according to information shared with DMN. That group could grow in size, though these midsize, indie publishers collectively control about 150,000 song copyrights. That’s enough to create a serious problem, and Spotify has already received litigation threats and letters, according to one source.
At this stage, nothing has been filed in court.
You’re kidding me right? What is this for? No accounting? No cover letter. Is this some sort of “bait” check? How can NMPA/HFA/Spotify settlement possibly be “fair” with this sort of nonsense going on? For those not familiar with the nuances of the music licensing business Harry Fox Agency (HFA) is s former subsidiary […]