Spotify’s potential bill if The MLC wins its ‘bundling’ lawsuit outright rises to $619M
Spotify’s estimated liability in its royalty dispute with the Mechanical Licensing Collective (The MLC) has risen to €538 million ($619 million), up €65 million in the latest quarter. The sum matters because it represents potential unpaid royalties if The MLC ultimately succeeds in arguing that Spotify’s Premium service should not be treated as a bundle that includes audiobook access.
The estimate covers March 2024 to September 2026 and excludes penalties and interest, which Spotify says it cannot reasonably calculate; direct publisher deals could partly offset any liability. A court has ruled that Premium is a bundle and denied The MLC an immediate appeal of that ruling, though the collective’s amended case challenges how Spotify valued bundle components and reported royalties. The case is moving towards summary judgment, with pre-motion letters due by 11 December.
In short
- Spotify’s worst-case estimate rose to €538 million.
- The amount covers the period since March 2024.
- The MLC case is moving towards summary judgment.
Steelman: both sides, in good faith
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The case for
The MLC’s strongest case is that adding audiobook access changed the nature and value of Spotify Premium, and that Spotify’s treatment of the service as a bundle may have reduced royalties owed to songwriters and publishers. Accurate reporting and payment rules matter for creators, and the collective can argue that its amended case should examine how Spotify valued the bundle and reported royalties, even after the court recognised it as a bundle.
The case against
Spotify can argue that Premium is properly treated as a bundle and that its royalty calculations follow that structure, a position supported by the court’s ruling. It can also point to direct publisher deals that may offset some liability, while noting that the estimate is not a final award and excludes penalties and interest that it says cannot yet be reasonably calculated.