(Globes)– Last week, Spotify denied it was coming to Israel, even though its negotiations with performers’ rights organization ACUM were known.
Spotify plans to enter the Israeli market officially, and is arranging a launch event for March 12 in Tel Aviv – after last week denying any intention of operating in Israel. ACUM, the Israeli performers’ right organization, has however told “Globes” that an agreement with Spotify on royalties has not yet been signed.
Senior Spotify executives are due to participate in the launch event, and to present to the local media the final details of the advent of the music streaming service in Israel.
Last week, “Globes” reported that Spotify was denying that it would come to Israel, despite the fact that its negotiations with ACUM were known. A spokesperson for Spotify in Berlin told “Globes”, “We know how excited Israeli music fans are, and Spotify wants to be available in every country, but we have no immediate plans to launch a service in the Israeli market.”
At the time that it gave this statement, Spotify was already in touch with Israeli PR firm Blonde 2.0. According to sources familiar with the matter, Spotify has been preparing intensively for months for its launch in Israel.
According to the same sources, the dispute with ACUM is over royalty levels. ACUM generally charges a royalty of 12.5%, but Apple Music pays it just 10%, and Spotify sought to pay a reduced royalty rate as well.
Spotify’s pricing varies from country to country, and the royalty level agreed with ACUM will affect the pricing of the service in Israel.