Spotify takes down comedians’ albums over royalty dispute

Given that Spotify is moving more into spoken-word content, including podcasts and audiobooks, the following case is worth watching. In December, Spotify removed hundreds of comedians’ work from its service due to a royalties dispute with Spoken Giants, a rights administration company trying to change standards around how spoken-word content gets paid. When Spotify plays comedian’s content, the comedians usually get paid by their label or distributor as well as by digital performance rights organizations. The dispute: Comedians are not compensated for writing that content or for their literary rights. (This is how payments work in the music industry: there are performance royalties and songwriting royalties.) Essentially, Spoken Giants wishes to develop a writing credit royalty system for podcasts. It strikes us as unlikely.