Spotify's first post-bundled royalty statements reveal a dramatic shift in subscription categorization, with 97% of all subscription accounts now classified as lower-paying bundles. This change is significantly impacting music publisher revenues.

Key findings from March 2024 statements:

• Nearly 20 million Individual subscriber accounts transitioned to bundled plans
• Only 869,912 Individual accounts remain non-bundled
• 4.17 million Duo accounts are now audiobook-bundled (up from 3.86 million)
• 5.65 million Family accounts are audiobook-bundled (up from 5.27 million)
• Almost zero non-bundled Duo or Family plans remain

Financial Impact:

• Estimated annual royalty decline exceeds $160 million
• Spotify's recent price increases will generate $500+ million annually
• Publishers expected to see minimal gains from these increases due to bundling

Industry Response:

The NMPA and music publishers are taking action through:

• MLC lawsuit challenging bundling reclassifications
• FTC complaints about "unfair and deceptive practices"
• Push for federal legislation allowing direct publisher negotiations
• MLC audit of Spotify's royalty payments

Spotify maintains its bundling approach is industry standard and plans to:

• Continue with bundle-focused strategy despite opposition
• Potentially introduce a music-only option in the US
• Defend against legal and legislative challenges

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