NMPA CEO Talks Spotify Podcast Takedowns and AI Strategy, Warns Against Government-Led PRO Reform
David Israelite's address touched on important topics within the music publishing industry. He addressed key concerns during his speech. The State of Music Publishing speech provided insight into current challenges and opportunities. Israelite's annual address is highly anticipated by industry professionals. The speech highlighted the ongoing evolution of the music publishing landscape.
NMPA President/CEO Addresses AIMP
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.
Data on Revenue Sources
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.
AI and Policy Concerns
On 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.
Concerns Over Spotify Bundling
Israelite 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.
PRO Reform
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.