Spotify and the National Music Publishers’ Association (NMPA) have struck a new deal, opening a path for independent publishers in the US to finally earn royalties from the platform’s expanding video features. Announced November 11, 2025, the Spotify NMPA deal creates an “Opt-In Portal” for direct audiovisual licensing.
This move, however, represents a fragile truce on one front of a much larger, bitter war. Sources confirm this new agreement for video does not resolve the industry’s explosive, ongoing legal battle against Spotify over its “bundle” strategy, a move the NMPA has alleged is costing songwriters and publishers an estimated $150 million annually in mechanical (audio) royalties.
The New Agreement: A Direct Line to Video Revenue
For years, Spotify’s use of video in the US—from full-length music videos to lyrical displays and video podcasts—has existed in a state of complex and often contentious licensing. This new agreement aims to clear the path.
The deal, announced via press releases from Spotify and the NMPA invites all eligible NMPA members who have not already entered a direct audiovisual deal to opt-in. This follows a pattern in 2025 where Spotify secured direct AV deals with the three major publishers—Universal Music Publishing Group, Sony Music Publishing, and Warner Chappell—as well as large independent publishers like BMG and Kobalt.
This new portal is, in effect, Spotify’s attempt to bring the rest of the independent publishing community into the fold.
In a statement, NMPA President and CEO David Israelite highlighted this, saying, “We are pleased that this deal offers indie publishers the chance to enter into direct deals with Spotify in regard to audiovisual streaming functionality on the platform alongside the recently announced larger publishing companies.” He called it a “new income stream” that “reflects the growing value of songs.
For Spotify, the deal is crucial for its product roadmap. The company has aggressively pushed into video to compete with TikTok and YouTube but has been hampered in the US, its largest market, by licensing hurdles.
“This new partnership with the NMPA will increase revenue for songwriters and independent publishers who are the heart of the industry,” said Alex Norström, Co-President and Chief Business Officer at Spotify.
Why ‘Direct Licensing’ Matters
Typically, digital services in the US can pay for the use of musical compositions (the song, as written) through a “compulsory license” set by the Copyright Royalty Board (CRB), with royalties collected and paid out by the Mechanical Licensing Collective (MLC).
This new Spotify NMPA deal bypasses that system. By offering a direct license, Spotify and publishers can agree to their own terms for these new audiovisual uses, potentially offering more flexibility and (as the NMPA implies) better rates than the compulsory system might provide for video.
A Fragile Peace on a Wider Battlefield
While the audiovisual deal is being presented as a step forward, it pointedly ignores the elephant in the room: the industry’s profound conflict with Spotify over basic audio royalties.
A source familiar with the negotiations confirmed to industry press that “the model video deal does not resolve publishers’ continuing dispute over how Spotify forceably converted its customers into ‘bundled’ plans which caused a significant reduction in royalties to songwriters.”
That dispute is the single biggest point of contention in the modern music industry.
The $150 Million ‘Bundle’ Dispute
The conflict ignited in early 2024 when Spotify, facing an impending royalty rate hike mandated by the CRB’s Phonorecords IV (Phono IV) ruling, reclassified its flagship Premium subscription plans. Because Spotify added 15 hours of audiobook access to these plans, it declared them “bundles.”
Under the Phono IV terms, “bundled” services are allowed to pay a lower mechanical royalty rate than standalone music subscriptions.
The publishing industry reacted with fury, accusing Spotify of using a “loophole” to unilaterally cut songwriter pay.
- The Financial Impact: In June 2024, the NMPA, citing Billboard calculations, stated the move would cost songwriters and publishers an estimated $150 million in its first 12 months alone.
- Long-Term Projections: At its 2025 annual meeting, the NMPA projected that if Spotify’s bundle practice is not reversed, it could cost publishers over $3.1 billion through the end of the next CRB period in 2032.
- The Legal Fights:
- The MLC Lawsuit: The Mechanical Licensing Collective (MLC) sued Spotify in May 2024, alleging the reclassification was unlawful. A US federal judge dismissed the suit in January 2025, but the MLC has refiled and is appealing the decision.
- The FTC Complaint: The NMPA filed a formal complaint with the US Federal Trade Commission (FTC) in June 2024, accusing Spotify of deceptive “bait-and-switch” practices against consumers by “forcibly” bundling services they didn’t ask for to justify lower creator payouts.
This new audiovisual deal was born from a separate, but related, conflict. In May 2024, the NMPA also sent cease-and-desist letters to Spotify, alleging “direct copyright infringement” for its unlicensed use of lyrics, music videos, and podcasts—the very content this new deal now seeks to properly license.
Analysis: Why Make a Deal Now?
The timing of this audiovisual deal, while the $150 million bundle war rages, reveals a pragmatic, if cynical, “two-track” strategy by both sides.
For Spotify: The company is desperate to unlock its video strategy in the US. It cannot compete with rivals if it is constantly facing infringement claims. This direct-licensing portal is a relatively low-cost way to “clear the rights” with thousands of independent publishers at once, unblocking its product development in exchange for a new, but separate, royalty stream.
For the NMPA: The major publishers already secured their own direct AV deals. NMPA CEO David Israelite’s primary job is to ensure his entire membership (including small “mom-and-pop” publishers) gets the same opportunity. This deal allows him to deliver a “win” for his indie members—a new, immediate source of video revenue—while preserving the right to continue fighting the much larger, existential battle over mechanical royalties in court and before regulators.
Essentially, the NMPA has agreed to compartmentalize: they will continue to sue Spotify over audio royalties while simultaneously partnering with them on video royalties.
What to Watch Next
This deal is not an end, but a new chapter. Publishers and songwriters must now decide whether to “opt-in” to the new audiovisual deal by the December 19, 2025, deadline.
Meanwhile, the industry’s full attention remains on the bigger-stakes battles ahead:
- The MLC’s Appeal: The outcome of the appeal over the bundle lawsuit dismissal will determine the fate of the $150 million-per-year mechanical royalty dispute.
- The FTC Investigation: Whether the FTC acts on the NMPA’s 2024 complaint remains a significant threat to Spotify’s business model.
- Phonorecords V: Negotiations for the next CRB rate period (2028-2032) are set to begin. After the bundle dispute, those negotiations are expected to be the most hostile in music industry history.
In conclusion, while independent publishers now have a path to get paid for video on Spotify, the industry remains deeply at war. This deal provides a new income stream for some, but it doesn’t buy peace.
