The National Music Publishers’ Association (NMPA) has announced licensing agreements with AI music companies Udio and Klay, with the Udio deal establishing the first industry-wide pact that values songs and sound recordings equally for AI training. CEO David Israelite revealed the deals at the NMPA’s annual meeting on 10 June.
Equal Valuation for Songs and Recordings
Israelite highlighted a key term in the Udio agreement.
“This deal delivers something that we have always demanded. Songs are just as important, if not more, than sound recordings when it comes to AI training. I am thrilled to report that in this first-of-its-kind, industry-wide deal, the training will value songs and sound recordings equally.”
While Kobalt previously struck a similar structure with ElevenLabs, Israelite noted that the principle has now been extended to an agreement open to all NMPA members. Members will review the terms and decide whether to opt in over the coming weeks.
“There has not been any deal offered across the entire market, until today,”
he said.
Klay Agreement in Principle
The NMPA’s deal with Klay is currently an agreement in principle and will be presented for member review later this summer. Israelite stressed that the organisation is pursuing both litigation and licensing simultaneously.
“As court cases play out, and as policymakers grapple with legislation, we are laser-focused on also paving the path forward through licensing. Litigating against bad AI actors, and licensing good AI partners is not in conflict. NMPA will do both.”
He later added:
“Both of these agreements represent real progress toward AI and creators working together and benefitting both sides. And for companies that don’t take this approach, you know what’s coming!”
US Publishing Revenues Hit $7.29bn
COO and CLO Danielle Aguirre presented new figures showing US publishing revenues reached $7.29bn in 2025, up from $2.17bn in 2014. She noted that publishing revenues have grown faster than recorded music for the fourth consecutive year, despite significant challenges to the value of songs.
Bundling Dispute Costing Publishers $473m
Aguirre pointed to the impact of audiobook-and-music bundles launched by Spotify and Amazon Music, which pay a reduced royalty rate under US licensing rules compared to standalone music streaming services.
“As an industry, we felt the very real effects of Spotify’s bundling scheme, followed by Amazon’s bundling, which reduced those companies’ royalty streams and payments by approximately 30%. By Spotify’s own estimates, those so-called bundles have cost songwriters and publishers almost $480m in royalty payments since they were implemented in 2024.”
Spotify’s latest quarterly financial filing updated the figure it would have to pay if the Mechanical Licensing Collective (MLC) prevails in its lawsuit over bundling: approximately €410m, equivalent to $473m at current exchange rates. This represents the additional amount Spotify would have paid publishers since 2024 had it not adopted the bundle rates. The bundling dispute remains a long-running point of contention between the NMPA and Spotify.
