Spotify has reached an agreement with the National Music Publisher’s Association (NMPA) over unpaid royalties. The streaming service will pay out around $21 million to publishers and songwriters in the deal, according to sources, with roughly $16 million set aside for royalty payments and a $5 million bonus fund for publishers and songwriters who opt in to the deal. The deal covers all content between Spotify’s inception and June 30th, 2017
Spotify to Pay Out $21 Million in Royalty Deal
The streaming music service reaches an agreement with the National Music Publisher’s Association.
The streaming service has been the target of a few lawsuits surrounding unpaid royalties, the latest of which was demanding $150 million in damages. Spotify is hoping that this deal with the NMPA will placate most of the complaints from publishers and songwriters, and it can move on from those lawsuits, and it may be right. Back in 2011, the NMPA struck a deal with YouTube and most of its constituents opted in instead of attempting alternative lawsuits.
This article originally appeared on Recode.net.
