Spotify signs new deal with Universal Music, putting albums behind a paywall
Following an extensive period of negotiations, Spotify has signed a new multi-year licensing deal with Universal Music Group that allows artists to release new albums exclusively on its premium service during a two week window. Pending on subscriber metrics, Spotify may be subject to reduced fee’s issued by Universal, which can prove to be beneficial as the company moves closer to its IPO.
Spotify CEO Daniel Ek states:
“We know that not every album by every artist should be released the same way, and we’ve worked hard with UMG to develop a new, flexible release policy….Universal artists can choose to release new albums on premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy.”
Moving forward, Spotify’s next task is to seal similar agreements with Warner Music Group and Sony Music Entertainment while using their current deal with UMG as a template. Launched in 2008, Spotify said last month it had reached 50 million paying subscribers, a rise of 25 percent in less than six months, extending its lead over Apple Music.
H/T Reuters
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Categories: Music