Universal Music Group (UMG), the world’s largest music label, and Swedish streaming giant Spotify have announced a new multi-year partnership covering both recorded music and music publishing. The deal introduces a direct license between Spotify and UMG for the U.S. and several other regions, according to a statement released on Sunday.
The agreement promises benefits for artists, songwriters, and consumers, with new offerings, updated paid subscription tiers, and the bundling of music and non-music content. It also expands Spotify’s audio and visual catalog. Spotify CEO Daniel Ek highlighted that the collaboration will ensure ongoing innovation, making music subscriptions more appealing to a global audience.
In recent months, Spotify has taken steps to increase profitability by laying off staff, scaling back podcasts, and reducing marketing expenditures. Additionally, the company has raised prices for its U.S. subscriptions to capitalize on the growing demand for premium services.
This deal marks a significant step in the evolving relationship between the music industry and streaming services, with both sides working to adapt to the shifting demands of the digital music market.
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