The NMPA (National Music Publishers' Association) has highlighted a striking disparity between Spotify CEO Daniel Ek's earnings and songwriter royalties. According to NMPA data, Ek sold $376 million in Spotify stock during 2024, while U.S. songwriters collectively received an estimated $320 million in royalties from the platform during the same period.

NMPA CEO David Israelite emphasized this discrepancy on LinkedIn, stating "The system is broken. Songwriters and publishers need the freedom to negotiate rates in a free market."

Ek's stock sales have continued into 2025, with regulatory filings showing total sales of nearly $560 million since February 2024, including approximately $127 million in February and March 2025 alone.

This criticism comes amid ongoing disputes regarding:

• Spotify's audiobook bundling practices affecting music royalties
• Major publishers opting for direct deals
• Licensing requirements for Spotify's planned remix and mashup features
• The Mechanical Licensing Collective's (MLC) legal challenge against Spotify's subscription reclassifications

A federal judge recently revived parts of the MLC's dismissed lawsuit, focusing on claims about improper royalty payments for audiobook plans and pricing concerns. The MLC has until April 1st to submit an amended complaint.

Related Articles

Previous Articles