Multiple US-based publishers are reporting a significant 30-40% drop in Spotify mechanical royalties during January 2025, specifically for October 2024 plays. This unexpected decline appears to be Spotify-specific and isn't occurring on other streaming platforms.

Key findings about the royalty decline:

• Affects US-based mechanical publishing royalties only
• Occurs across all genres, artists, and regions
• Coincides with an unusual increase in performance royalties
• Not linked to usage drops or specific catalog changes
• Processed through the Mechanical Licensing Collective (MLC)

This development is particularly notable given recent data showing that music-only, non-bundled Spotify subscriptions now represent less than 1% of US-based subscriptions. Bundled plans typically generate lower mechanical royalties for publishers and songwriters.

Current status:

• Spotify has been contacted but hasn't issued an official statement
• The cause remains unclear - could be an accounting error or methodology change
• Issue appears isolated to Spotify, not affecting other DSPs
• Investigation is ongoing

The situation is especially concerning since Q4 typically sees increased streaming activity for many publishers. Both specific stream rates and aggregate amounts have shown substantial decreases compared to previous late-2024 payments.

Updates will be provided as more information becomes available.

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