Multiple US-based publishers report a significant 30-40% drop in Spotify mechanical royalties during January 2025, specifically for October 2024 plays. This unexpected decline appears to be Spotify-specific and hasn't been observed on other digital streaming platforms.

Key findings:

• The decline affects US-based mechanical publishing royalties exclusively
• Performance royalties showed a simultaneous unexpected increase
• The drop appears consistent across artists, genres, and regions
• No changes in royalty calculations were reported by publishers
• Processing occurs through the Mechanical Licensing Collective (MLC)

This development coincides with Spotify's recent shift toward bundled subscription options, with non-bundled, music-only subscriptions now representing less than 1% of US-based subscriptions. Notably, bundled plans typically result in lower mechanical royalties for publishers and songwriters.

The cause remains unclear and could be attributed to:

• Accounting error
• Methodology change
• System adjustment

Spotify has been contacted regarding this matter but hasn't issued an official statement yet. This situation is still developing, and further updates are expected as more information becomes available.

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