The National Music Publishers' Association (NMPA) has released a holiday card taking aim at Spotify's controversial bundling practices, featuring staff members in winter gear as "the only acceptable way to bundle this holiday season."

The card's reverse side shows the same staff without winter clothing, "wishing you unbundled joy in 2025" - directly referencing Spotify's recent U.S. bundling reclassifications that have significantly impacted mechanical royalties.

This bundling controversy stems from Spotify's decision to reclassify existing music subscriptions as bundles after adding audiobook access. Under the Phonorecords IV determination, bundled subscription revenue is treated differently than unbundled revenue, resulting in reduced royalty payments to songwriters and publishers.

Key points about the current situation:

• Approximately 99% of U.S. Spotify subscriptions are now classified as bundles
• Competitor bundling rates are significantly lower (Apple Music: 27%, Amazon Music: 20%)
• The MLC and NMPA dispute Spotify's classification of these offerings as true bundles
• Legal proceedings between MLC and Spotify continue, with discovery extended to June 2025
• Spotify's ad-supported tiers remain unbundled, according to NMPA head David Israelite

While other streaming platforms like Amazon Music have begun offering audiobook features, widespread adoption of similar bundling strategies appears unlikely due to potential industry backlash. However, there are no legal barriers preventing competitors from following Spotify's approach.

As Spotify continues expanding into non-music content, including user-uploaded videos, the platform is also strengthening its content moderation team with new hires focused on government takedown requests.

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