How could the increase in MLC revenue affect Spotify Technology's royalty obligations?
Spotify Technology may face higher royalty processing volumes due to MLC revenue growth. The inclusion of revenue from the Mechanical Licensing Collective (MLC) contributed significantly to the growth of global music publishing collections, which reached nearly 14.6 billion euros in 2025. This growth, driven partly by the MLC, expands the overall pool of mechanical royalties available. For streaming platforms like Spotify Technology, this means an increase in the volume of royalties that must be managed and distributed, reflecting the growing demand for creative works globally.
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How it reaches Spotify Technology
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Global music publishing collections reached nearly 14.6 billion euros ($15.89 billion) in 2025, marking an 11.9% increase from the 12.6 billion euros ($13.62 billion) recorded the previous year. CISAC director general Gadi Oron noted that this growth demonstrates the resilience of collective management. More than half of the revenue increase was attributed to the first-time inclusion of revenue from the Mechanical Licensing Collective.
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As the MLC contributes to the overall growth of music publishing collections, the total pool of mechanical royalties available expands. This increased pool necessitates that streaming platforms, which rely on these royalties for content licensing, manage a higher volume of payments and distribution.
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The facts so far
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- Global music publishing collections grew to nearly 14.6 billion euros in 2025, up 11.9% from the prior year.billboard.com
- More than half of the increase in collections was due to the first time inclusion of revenue from the Mechanical Licensing Collective (MLC).billboard.com
- Digital royalties comprise 45.6% of music publishing royalties, totaling 6.41 billion euros in 2025.billboard.com
Why it matters
The growth in music publishing collections is critical for the financial stability of the entire industry. For Spotify Technology, managing a larger and growing royalty pool means increased operational complexity and higher financial obligations related to content licensing. While the increased revenue is positive for creators, the operational scale required to process these payments is a concrete factor for the platform.
Beyond the immediate financial impact, the industry is facing significant challenges, including the double-edged sword of artificial intelligence. CISAC noted that the systems protecting creators’ rights must evolve quickly enough to keep pace with technological change, which affects how future royalty models are structured and managed by platforms like Spotify Technology.
What we don't know yet
- How will the increasing influence of artificial intelligence change the structure of mechanical royalty payments?
- Will the MLC continue to expand its scope, further increasing the volume of royalties processed?
What would change this answer
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Other possible ripples from the same event.
Reporting
- billboard.comWednesday
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.