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When a streaming service adds audiobooks (or other media) to a music plan and calls it a bundle, U.S. mechanical royalties for songwriters can be calculated at a discounted rate under the current rules. In 2024–2025 this reclassification triggered sizeable drops in U.S. mechanicals for many writers and publishers. Trade groups and the MLC have pushed back in court and at regulators, while Spotify won an early dismissal in January 2025 — and the case was later revived to proceed on amended claims. Expect more clarity as litigation and negotiations continue into 2026.
In the U.S. statutory system (the mechanical license), services can classify certain plans that include music + another product (e.g., audiobooks) as bundles. That classification lets platforms apply lower royalty obligations than a music-only tier — a change widely criticized by songwriter groups after Spotify added 15 hours of audiobooks to its Premium plans and reclassified Premium, Duo, and Family as bundles.
Songwriters/Publishers (mechanicals): Paid via the MLC on formulas set by the Copyright Royalty Board (CRB). When a plan is treated as a bundle, the eligible service revenue for music can be reduced relative to a pure music tier, lowering mechanical payouts. In early 2025, many publishers reported 30–40% month-over-month drops in U.S. mechanicals tied to the reclassification.
Recording owners (masters): Labels/distributors get their share via private deals with services; those deals aren’t governed by the MLC. Bundle pricing can still influence the effective revenue base, which may flow through to master royalties depending on contract terms. (Public disclosures and trade-press analysis track the impact across the ecosystem.)
Different rights, different pipes. Masters (labels) and compositions (publishers/songwriters) are paid through separate systems with different contracts and formulas. One plan change can ripple through both.
Rate math is technical. The CRB framework for bundles uses special calculations rather than a simple “per-stream” number, so creators see outcomes (like sudden drops) without an intuitive explanation on statements.
Mixed legal signals. In Jan 2025, a federal judge dismissed the MLC’s first complaint against Spotify over bundling; fall 2025 rulings allowed the MLC to amend and proceed, so the dispute continues.
Publisher & songwriter groups: NMPA, NSAI, and the Music Artists Coalition have publicly opposed the bundling move, estimating $150M in lost U.S. mechanicals in the first 12 months and projecting $3.1B in losses through 2032.
Creators & the Nashville community: NSAI and Nashville writers warned the change “hurts payouts” and urged reversal or music-only tiers.
Individual artists/songwriters: Coverage has highlighted broad creator criticism; industry press and op-eds document sustained opposition from songwriters to the bundling discount and its impact on mechanicals.
Bottom line: while labels, publishers, and services keep negotiating, songwriters and many artists remain publicly critical of bundles because they reduce mechanical payouts compared with music-only tiers.
Courts: The case is active again after October 2025 filings; further rulings in 2026 could determine how audiobook-plus-music plans are treated under the compulsory license.
Deals: Spotify and UMG announced a new 2025 deal that reportedly improves some bundling payments and explores new tiers (e.g., superfans). If similar publisher deals follow, it could soften the impact while courts play out.
Policy & pressure: Trade bodies continue pressing the FTC and CRB; NMPA has kept up regulatory complaints and public estimates, which keeps the issue in view.
Compare pre- and post-bundle statements (Jan–Mar 2024 vs. 2025) and tag mechanical variances by service and plan.
Audit metadata and splits (MLC registrations, CAE/IPI, ISWC) so reduced revenue isn’t compounded by mismatches.
Ask your publisher/admin how they’re modeling bundle exposure and whether they’re pursuing adjustments or claims.
Model plan mix risk in forecasts — if your audience is Spotify-heavy, build conservative mechanical assumptions until the legal picture settles.
Diversify: Lean into platforms with stronger per-stream economics (e.g., Apple, hi-res services) and non-streaming revenue like sync and direct fan support.
Taylor Swift’s Fight for Her Masters & What It Means for Creator Rights In the high-stakes intersection of creativity and commerce, few stories illustrate the power dynamics of ownership better than Taylor Swift’s years-long battle over her master recordings....