Music publishers accuse Spotify of 'bait-and-switch subscription scheme'

The National Music Publishers Association (NMPA) has filed a complaint with the Federal Trade Commission against Spotify over the streaming giant's controversial audiobook bundle offering. The premium subscription tier bundle has led to decreased royalties for songwriters, with the trade group calling the strategy "a scheme to increase profits by deceiving consumers and cheating the music royalty system."

This development reignites longstanding tensions over equitable compensation in the streaming era, casting a spotlight on Spotify's evolving business strategies and their implications for both consumers and music industry stakeholders.

Spotify announced in November that it would integrate 15 hours of audiobook content into all Premium subscription plans. The company initially assured users that no action was necessary on their part.

Audiobooks designated as "Included in Premium" would be instantly playable. Premium subscribers were allotted 15 hours or about two audiobook equivalents per month. If users exceed this limit, they could purchase a 10-hour top-up for $12.99. Spotify also offers another option: the Audiobooks Access Tier.

"Spotify's approach to expanding its offering and raising prices is industry standard," a Spotify spokesperson responded. "We notify users a month in advance of any price increases and offer easy cancellations as well as multiple plans for users to consider."

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