The National Music Publishers Association (NMPA) has requested the Federal Trade Commission (FTC) to investigate the inclusion of audiobook content in all paid subscription plans on Spotify. The actions taken by the streaming service would be part of “a plan to increase profits by deceiving consumers and deceiving the music copyright system,” according to the complaint.
In November 2023, Spotify announced the addition of 15 hours of audiobook content to all its Premium subscription plans. Shortly after, the company launched a new exclusive subscription for audiobooks, offering the same 15 hours of listening for $10 a month. The NMPA argues that the recent price increases by Spotify are based on the offering of this additional content, and that paying subscribers are being automatically charged for a service they didn’t choose and cannot unsubscribe from without switching to a free version that contains ads.
The NMPA also argues that the additional revenue gained from these increases will not benefit music composers. According to the complaint filed with the FTC, Spotify will pay approximately $150 million less in copyright royalties during the first year of implementing these new Premium plans.
The organization has described the new audiobooks plan as a “farce”, stating that it “only exists to allow Spotify to claim that audiobook content is a significantly valuable aspect of their ‘combined’ Premium Plan, since the ‘Audiobook Access Plan’ costs only $1 less than the Premium Plan with exactly the same audiobook and music content.”
For now, it’s unknown whether this controversy could influence Spotify’s planned copyright model revision. Both artists and publishers have consistently criticized the streaming ecosystem, specifically pointing out Spotify for paying very little to music creators.
