National Music Publishers’ Association (NMPA) president/CEO David Israelite joined the Association of Independent Music Publishers (AIMP) to give his annual State of Music Publishing address on Wednesday (April 2) at Lawry’s in Beverly Hills. In his speech, Israelite discussed hot button issues for publishers, including Spotify bundling (“we are still at war”), AI concerns, PRO reform and more.
Israelite started by sharing the NMPA’s data on the revenue sources for songwriters and publishers. It found that songwriters and publishers earn 45% of revenue from streaming services, 11% from general licensing and live, 9% from traditional synchronization licensing, 8% from mass synch (licenses for UGC video platforms like YouTube), 8% from radio, 7% from TV, 4% from labels, 2% from social media, 1% from sheet music, and 1% from lyrics. The NMPA says that 75% of its income is regulated by either a compulsory license or a consent decree, while the remaining 25% is handled via free-market negotiation.
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03/10/2025On the AI front, Israelite explained that the NMPA is actively watching and supporting pending legal action.
“We have not filed our own lawsuit yet, but I can promise you that if there is a path forward with a productive lawsuit, we will be filing it,” he said. As far as trying to regulate AI through policy, Israelite added, “We’re doing everything that can be done.” The NMPA is participating in both a White House initiative and a Copyright Office initiative, but he added, “If you are waiting for the government to protect your rights and AI models, I think that is a very bad strategy.”
Instead, Israelite said that the “most emphasis” should be placed on forming business relationships with AI companies. “When that date comes [that AI companies are willing to come to the table to license music], I believe the most important principle is that the song is just as valuable, if not more, than the sound recording in the AI model,” he continued.
During the speech, Israelite said he had a recent conversation with “the CEO of one of the major AI companies” who told him that “by far, the song [as opposed to the sound recording] is the most important input into these models. I tell you this because I am fearful that as these models develop, if we do not protect our rights, we will find ourselves in a situation where we are not getting as much or more than the sound recording when it comes to revenue…that is a responsibility of this entire community to fight for that.”
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02/10/2025Israelite added that his “number one problem when it comes to revenue is how we are treated with these bundled plans,” pointing to publishers’ ongoing issues with Spotify. Last year, Spotify added audiobooks into its premium tier offerings and began claiming those tiers as “bundles,” a term referring to a type of subscription that qualifies for a discounted rate for music. Spotify claimed that it now had to pay to license both books and music from the same subscription price and subsequently started paying songwriters and publishers about 40% less for music, according to the NMPA. At the time, Billboard estimated that this would lead to a $150 million reduction in payments to publishers in the next year, compared to what publishers would have been paid if the tiers had never been reclassified.
In January, news broke that Universal Music Group (UMG) and Spotify had forged a direct deal that gave UMG’s publishing arm improved terms, effectively minimizing the harm caused by the previous year’s bundling change. Shortly after, Warner Music Group (WMG) followed suit with its own direct deal with Spotify for improved publishing remuneration. “I know in this room in particular, there is a great concern about what those market deals mean for the whole industry,” Israelite says. “I want to be very clear about this. I believe those market deals are a good thing, but until everybody benefits from the same protections about how bundles are treated, we are still at war. Nothing has changed.”
Israelite added later that UMG and WMG’s direct deals could be cited as “evidence” to support the publishers’ position during the next Copyright Royalty Board (CRB) fight, which will determine the U.S. mechanical royalty rates for publishers in the future. The CRB proceedings begin again in 10 months, and Israelite estimates his organization will spend $36 million in the next trial to fight for the publishers’ position. While he often noted that “we shouldn’t be in this system in the first place” during his address, Israelite conceded that despite his calls for a legislative proposal that would give publishers and writers the right to pull out of the 100-year-old system of government-regulated price setting for royalties, the “brilliant idea” is “next to impossible to accomplish.”
Israelite went on to detail all the ways the NMPA and others are still fighting back against Spotify over the bundling debacle. He noted that the Mechanical Licensing Collective (MLC) “is doing a fantastic job of continuing the fight” against Spotify, adding that its lawsuit, which was dismissed earlier this year by a judge who called the federal royalty rules “unambiguous,” has “been revived.” He added, “[It’s] our best chance of getting back what we lost.”
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02/04/2025Elsewhere in his speech, Israelite told the crowd of independent publishers that the NMPA has now sent three rounds of takedown notices to Spotify for various podcast episodes, citing copyright infringement of its members’ songs, and that “over 11,000 podcasts have been removed from Spotify” as a consequence.
The recent calls for performing rights organization (PRO) reform are also top of mind for publishers in 2025. Last year, the House Judiciary Committee sent a letter to the Register of Copyrights, Shira Perlmutter, requesting an examination of PROs, citing two areas of concern: the “proliferation” of new PROs and the lack of transparency about the distribution of general licensing revenue. This spurred the Copyright Office to take action, opening a notice of inquiry that allows industry stakeholders to submit comments, sharing their point of view about what, if anything, should be reformed at American PROs. However, some fear that the notice of inquiry could lead to increased regulation at the PROs, further constraining publishing income.
Israelite addressed this by giving publishers a preview of the NMPA’s forthcoming comments. “I will tell you today exactly what our comments are going to say,” he said. “It is very simple. Music publishers and songwriters are already over-regulated by the federal government. Congress should be focused on decreasing regulation of our industry, not increasing regulation of our industry, and to the extent that any of these issues are substantive issues. This should be dealt with between the PROs and their members. It has nothing to do with the Copyright Office. It has nothing to do with Congress. It has nothing to do with the federal government.”
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