Universal Music Group and Spotify have reached a multiyear distribution agreement that is said to improve payment to artists and authors. The new terms address concerns over a controversial Spotify music-audiobooks royalty bundling policy alleged to have reduced songwriter royalties in order to pay audiobook rightsholders. The policy resulted in a Federal Trade Commission complaint filed by the National Music Publishers Association in June. “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,” the companies jointly announced. Continue reading Spotify Tackles Controversial Royalty Bundling with UMG Deal

Spotify inked a new multi-year global licensing deal with Universal Music Group after being out-of-contract for about a year. Under the terms of the agreement, Spotify has access to UMG’s catalog for streaming and UMG will be part of Spotify’s so-called two-sided marketplace, whereby it will pay for analytics, data and marketing. Spotify, under pressure to prove to investors that it can be more consistently profitable, spends most of its revenue on licensing deals with music publishers and record labels. Continue reading Spotify, Universal Music Join Forces with New Licensing Pact

Spotify and Universal Music Group, the world’s biggest record company, finally inked a global, multiyear licensing deal after two years of intermittent negotiations. With this deal in place, Spotify now has a better chance of convincing Sony and Warner to follow suit, and UMG, whose artists include Drake, U2, The Weeknd and Lady Gaga, has more flexibility on how it streams its music. Spotify’s contracts with UMG, Sony and Warner had expired long ago. Spotify, valued at $8 billion, now also has a clearer path to going public. Continue reading Spotify Inks a New Licensing Deal with Universal Music Group