U.S. Senators Urge FTC to Investigate Spotify Bundling, Royalty Cuts

U.S. Senators Marsha Blackburn and Ben Ray Luján have called on the Federal Trade Commission to investigate Spotify's subscription bundling practices, which automatically convert premium music subscribers to higher-priced bundled plans including audiobooks without explicit consent. This bundling strategy has led to significantly reduced royalty payments to songwriters and music publishers—estimated at around $150 to $230 million less annually—because the bundled subscriptions qualify for lower mechanical royalty rates under current federal regulations. Spotify raised subscription prices after adding 15 hours of audiobook streaming per month to its premium plans, forcing many users into costlier bundles unless they manually opt out, a process criticized as difficult and obscure. The senators warn these actions harm consumers and risk damaging the music marketplace and royalty system by exploiting regulatory loopholes. Although Spotify introduced a music-only plan in response to backlash, it remains less accessible, especially to new customers. A recent federal court ruling upheld Spotify's bundling under existing law, but the National Music Publishers Association and other industry groups continue to oppose the practice, emphasizing its negative impact on creators.