If you collect mechanical royalties — pay attention to this.
Spotify recently won a legal challenge against The MLC — the Mechanical Licensing Collective — over how streaming royalties are calculated and distributed.
Here’s what happened in plain language:
Spotify argued that certain types of streams should be classified differently — which would lower the mechanical royalty rate they’re required to pay out to songwriters and publishers.
The court sided with Spotify.
What that means for you as an independent artist:
The mechanical royalty rate on certain streams just got reduced. If you’re registered with The MLC — which you should be — your per-stream payout on those specific stream types will be lower going forward.
This is exactly why I say streaming royalties alone can never be your strategy.
One court case. One platform decision. One policy change. And your income takes a hit overnight — with zero notice and zero say in the matter.
The artists who are protected are the ones running all 8 revenue streams simultaneously. When one stream gets cut — the other 7 keep the lights on.
If you’re not registered with The MLC yet — go to themlc.com right now. Even with reduced rates it’s still money you’re owed. And if you want to understand how to build a revenue stack that doesn’t collapse when one platform changes the rules — everything is inside the free classroom.
Question for the room — how many of you are currently registered with The MLC?