Universal Music Group (UMG) and music streaming platform Spotify have inked a brand new, multi-year licensing agreement, according to an official announcement.
The deal is a direct licensing agreement between Universal Music Publishing Group (UMPG) and Spotify in the United States as well as within other territories.
“When we first presented our vision for the next stage in the evolution of music subscription several months ago—Steaming 2.0—this is precisely the kind of partnership development we envisioned” Sir Lucian Grainge, Chairman & CEO, Universal Music Group said in an official statement. “This agreement furthers and broadens the collaboration with Spotify for both our labels and music publisher, advancing artist-centric principles to drive greater monetization for artists and songwriters, as well as enhancing product offerings for consumers.”
“For nearly two decades, Spotify has made good on its commitment to return the music industry to growth, ensuring that we deliver record payouts to the benefit of artists and songwriters each new year” Daniel Ek, Spotify’s Founder and CEO added. “This partnership ensures we can continue to deliver on this promise by embracing the certainty that constant innovation is key to making paid music subscriptions even more attractive to a broader audience of fans around the world.”
According to the release, the deal is outlines as such (among other things): “Under the new agreements, UMG and Spotify will collaborate closely to advance the next era of streaming innovation. Artists, songwriters and consumers will benefit from new and evolving offers, new paid subscription tiers, bundling of music and non-music content, and a richer audio and visual content catalog. By deepening audience experiences, driving further engagement and amplifying the connection between artists, songwriters and their fans, the collaboration between these two companies will position the industry for continued subscriber growth and retention.”
