The National Music Publishers' Association (NMPA) has released a holiday greeting card taking aim at Spotify's controversial bundling practices, featuring a clever "unbundled joy" message alongside seasonal staff photos.

The card shows NMPA staff in winter gear on one side - noting it's "the only acceptable way to bundle this holiday season" - and without winter clothing on the reverse, "wishing unbundled joy in 2025."

This playful jab references Spotify's recent U.S. bundling reclassifications, which have significantly impacted mechanical royalty payments. After adding audiobook access to existing music subscriptions, Spotify reclassified approximately 99% of U.S. subscriber accounts as bundles, compared to much lower bundling rates from competitors like Apple Music (27%) and Amazon Music (20%).

The reclassification has led to substantial cost savings for Spotify while reducing payments to songwriters and publishers, as bundled subscription revenue is treated differently under the Phonorecords IV determination.

The NMPA, Mechanical Licensing Collective (MLC), and other industry stakeholders contest Spotify's bundle classification, leading to ongoing litigation. The discovery phase has been extended to June 2025, meaning Spotify's current bundling practices will likely continue until the court reaches a decision.

Key developments to watch in 2025:

• The outcome of the MLC v. Spotify lawsuit
• Potential bundling moves by other streaming platforms
• Spotify's expansion into non-music content, including user-uploaded videos
• Impact on mechanical royalty payments industry-wide

While Spotify maintains its offerings qualify as legitimate bundles under Phono IV, the industry remains divided on this interpretation, with significant implications for creator compensation in the streaming era.

Related Articles

Previous Articles