As MBW previously reported, Spotify and Universal Music Group have signed a new multi-year licensing deal.
Both sides of the deal have now confirmed their fresh alliance.
And with MBW’s source nodding earlier… Universal Music Publishing Group (UMPG) And Spotify USA (along with several other territories).
Sir Lucian GraseyUniversal Music Group Chairman and CEO said: “When we first laid out our vision for the next step in the evolution of music subscriptions a few months ago – stamping out 2.0 – this is the kind of partnership development we had in mind. “This agreement further develops and expands our collaboration with Spotify for labels and music publishers, advancing our artist-centric principles to increase monetization for artists and songwriters and enhance our product offering for consumers.”
Daniel Eck“For nearly two decades, Spotify has made good on its promise to return the music industry to growth, delivering record payouts to artists and songwriters every year,” said Spotify’s founder and CEO. “This partnership allows us to continue to deliver on this promise by embracing the certainty that constant innovation is key to making paid music subscriptions more attractive to fans around the world.”
Behind the scenes, debate over the proposal remains. MBW source From our earlier story – The New Deal is essentially ending controversial ‘bundle’ related discount rates. Spotify to hmm After the first quarter of 2024.
Here is our understanding.
- Through new direct transactions hmmRoyalties paid to publishers and songwriters in the United States Spotify That will change.
- Our sources are Spotify to umpg, The effect of bundle-related discounts over the past year will be effectively nullified. hmm And the composer will rise.
- However, within an individual hmm and Spotify According to the agreement, there remains a value differentiation between music-only and music-only users.
On this matter, in response to our story, Spotify A spokesperson said: “Spotify will keep the bundle, but this direct transaction will remain [with UMPG]It has evolved to account for a wide range of rights, including different economic treatment of music and non-musical content.”
New official press release UMG and Spotify Their fresh deals are posted in full for your specification below.
Universal Music Group and Spotify reach new multi-year deal
Expanding global relationships for recorded music and music publishing
A company that accelerates product innovation and deepens music monetization and engagement between artists and fans.
SANTA MONICA and STOCKHOLM, January 27, 2025 – Universal Music Group (UMG), the world leader in music-based entertainment and Spotify, the world’s most popular audio streaming subscription service, has signed a new multi-year agreement for recorded music and music publishing. Announced. The focus is on growth, innovation and the development of artists and the success of songwriters.
Sir Lucian Grainge, Chairman and CEO of Universal Music Group, said: “When we first laid out our vision for the next step in the evolution of music subscriptions a few months ago – stamping out 2.0 – this is the kind of partnership development we had envisioned. no see. “This agreement further develops and expands our collaboration with Spotify for labels and music publishers, advancing our artist-centric principles to increase monetization for artists and songwriters and enhance our product offering for consumers.”
Daniel Ek, Spotify founder and CEO, said: “For nearly two decades, Spotify has made good on its promise to return the music industry to growth, delivering record payouts to artists and songwriters each year. “This partnership allows us to continue to deliver on this promise by embracing the certainty that constant innovation is key to making paid music subscriptions more attractive to fans around the world.”
Under the new agreement, UMG and Spotify will work closely together to advance the next era of streaming innovation. Artists, songwriters and consumers will benefit from new and evolving offerings, new paid subscription tiers, music bundling and non-music content, and a richer catalog of audio and visual content. By deepening the audience experience, driving greater engagement, and amplifying the connection between artists, songwriters, and fans, the collaboration between these two companies will position the industry for continued subscriber growth and retention.
The new publishing agreement establishes direct licensing between Spotify and Universal Music Publishing Group across Spotify’s current product portfolio, strengthening a mutually beneficial relationship with songwriters on the platform.
The new agreement also renews the company’s commitment to artist-centric principles, ensuring artists continue to be compensated for the share of audience engagement they drive, and streaming royalties remain protected through the platform’s fraud detection and enforcement. . system.worldwide music business
