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Music Business Advances: Kobalt and Spotify Secure Fresh Direct License Deal

Music streaming giant Spotify and publishing company Kobalt have unveiled a new direct licensing arrangement aimed at safeguarding the rights of American songwriters.

,   and  ASMedia
3 min read
Music Business Development: Kobalt and Spotify Finalize Direct Licensing Partnership
Music Business Development: Kobalt and Spotify Finalize Direct Licensing Partnership

Music Business Advances: Kobalt and Spotify Secure Fresh Direct License Deal

In a move that could significantly impact the music industry, Spotify and Kobalt have signed a direct and multi-year licensing agreement in the United States. This partnership aims to enhance the financial benefits and creative opportunities for songwriters on streaming platforms.

Key Impacts

  1. Increased Flexibility and Efficiency: The agreement is designed to deliver greater flexibility and efficiency in licensing, enabling a more streamlined process for songwriters. This could lead to quicker payments and better management of their works on Spotify.
  2. Fair Compensation and Royalties: By enabling Kobalt to negotiate bespoke terms for mechanical royalties, the deal ensures that songwriters receive fair compensation for their work. This shift away from compulsory licensing rates allows for more equitable distribution of royalties.
  3. Innovation and New Formats: The partnership promotes a licensing framework that supports innovation, enabling new formats and ways for music to be shared. This could lead to more diverse and engaging content on Spotify, benefiting both creators and fans.
  4. Broader Industry Shift: The agreement reflects a broader shift towards licensing structures that allow songwriters to participate more directly in the value their work creates. This could set a precedent for future licensing deals, potentially increasing the overall value of songwriter royalties across the industry.

Industry Moves

Meanwhile, other significant changes are unfolding within the music industry.

  • Alex Norström, co-president and chief business officer of Spotify, has stated that the agreement with Kobalt boosts their support of songwriters.
  • Rob Inadomi, most recently vp of A&R at RCA Records, is joining the new venture Nebula17 as a founding partner, head of global A&R, and president of label.
  • Benny Brown has launched a new music publishing company called North Chapel Music. Paul Compton was named executive vp of North Chapel Music, responsible for all day-to-day creative and administrative management. Wendy Buckner was named creative director at North Chapel Music, reporting to Paul Compton.
  • North Chapel Music has acquired all assets of Wide Open Music Publishing. The catalog of Wide Open Music included Brett Young's "In Case You Didn't Know," George Birge's "Mind On You" and Matt Stell's "Prayed For You." Jaron Boyer, Neal Coty, Matt Gorman, and Joe Hanson are among the songwriters brought over to North Chapel from Wide Open Music. Matt Cooper, Spencer Hatcher, Connor Hatcher, Jason Sellers, and Jennifer Wayne have signed publishing deals with North Chapel Music.
  • Daniela Gutiérrez has been elevated to director, marketing, Latin at Downtown Artist and Label Services. Lorena Cabral has been promoted to director, A&R, Mexico at Downtown Artist and Label Services.
  • Lo Ting-Fai, known as Lofai, has been appointed president of Warner Music APAC.
  • Bebe Stockwell has signed with TMWRK for management and Wasserman for touring.
  • Concord Music Publishing has signed producer, songwriter, and musician Fraser T Smith to a new worldwide publishing agreement. Smith, who has a career spanning more than two decades, has collaborations with Adele, Stormzy, Dave, Sam Smith, Kano, Celine Dion, James Morrison, and Snow Patrol.
  • Kirk Sommer, senior partner and global co-head of music at WME, has been named International Music Person of the Year for 2025 by Musexpo.
  • Morgan Wallen and agent Austin Neal's Nashville-based Sticks Management is expanding, signing Warner Nashville singer-songwriter Gavin Adcock.

These developments underscore the dynamic nature of the music industry, with companies continually seeking ways to support and empower songwriters and creators in the digital age.

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