Spotify signs new BMG deal promising greater value for songwriters

For a long time, songwriters have asked a simple question: why does streaming pay so little? Platforms earn billions, yet the people behind the music often see barely enough in return.

That tension came to a head earlier this year when Spotify quietly reclassified its Premium tier as a “bundle” after adding audiobooks. The shift let it split royalties between music and books, cutting songwriter payments by about $230 million in the United States (via National Music Publishers’ Association). It confirmed what many in the industry already suspected—that streaming platforms can move the goalposts whenever they choose.

Now, Spotify is trying to rebuild some of that lost trust. Its new licensing deal with BMG promises “greater value” for songwriters and their teams. It joins a growing list of renegotiated deals with Sony Music, Universal, Warner, Kobalt, and Merlin. Each one tweaks royalty structures in small ways, but together, they signal an effort to fix relationships strained by those earlier royalty changes.

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In their joint statement, Spotify and BMG described the deal as a “more flexible licensing model that better serves publishers and their artists.” BMG CEO Thomas Coesfeld said it reinforces his mission to ensure fairer rewards for songwriters, while noting Spotify’s recent progress on AI protections. The tone was hopeful, but beneath it was a quiet acknowledgment: both sides need this deal to work.

What remains uncertain is whether this changes much for songwriters themselves. A slightly higher payout helps, but it doesn’t solve the deeper imbalance between creativity and consumption. The system still favors platforms that distribute music over the people who create it.

In the end, this is more than a contract update. It reflects a shift in how streaming giants are trying to manage perception and power. If deals like this continue, we may see less confrontation and more negotiation, but the question of who really shapes music’s digital economy remains the same.

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