Key Points
- Spotify will launch music videos for U.S. premium subscribers in the coming weeks, after testing the same feature with overseas users in recent months.
- The rollout follows a new NMPA deal granting Spotify expanded audiovisual rights in the U.S.
- Independent publishers gain new direct licensing and royalty opportunities through the NMPA portal.
Spotify is preparing to launch music videos in the United States, expanding a feature that has been in beta in nearly 100 international markets since January, the company quietly confirmed this week.
The new feature, rolling out to Spotify subscribers in the next few weeks, will allow streaming audio fans to watch official music videos directly within the Spotify app, setting the streaming platform in more direct competition with YouTube.
Spotify’s move was first revealed in a separate announcement on Tuesday that focused on a new pact with the National Music Publishers’ Association (NMPA). The two organizations unveiled a new “Opt-In Portal” that allows NMPA members to enter direct licensing agreements that grant Spotify expanded audiovisual rights in the U.S. The arrangement is the first necessary step toward Spotify’s distribution of music videos stateside.
In a statement, Spotify co-President and Chief Business Officer Alex Norström said the arrangement reflects the company’s broader efforts to strengthen its relationships with songwriters and publishers. “This new partnership with the NMPA will increase revenue for songwriters and independent publishers who are the heart of the industry,” Norström said. “We look forward to continuing to work with the NMPA to create new value and opportunities for their members.”
David Israelite, President and CEO of the NMPA, said the new framework provides independent publishers with an opportunity to negotiate directly with Spotify for audiovisual streaming rights, mirroring agreements already reached with major publishers.
“This new income stream reflects the growing value of songs as digital platforms offer new capabilities to consumers,” Israelite said.
According to Spotify, the new deals will result in higher royalty payouts for independent songwriters and publishers, while granting the platform additional rights to expand its video capabilities and develop “features that better connect artists and fans.”
The NMPA Opt-In Portal opened to eligible publishers on November 11 and will remain active for onboarding through December 19.
Spotify is hoping the introduction of music videos will make its audio platform stickier with subscribers. During its most-recent financial quarter, Spotify grew its paid customer base to 281 million, up 12 percent compared to last year. The number of people using Spotify around the world stands at 713 million monthly active users, up 11 percent.
In addition to millions of songs, Spotify also offers hundreds of thousands of podcasts and tens of thousands of audiobooks.
