Spotify and Warner Music Group (WMG) have unveiled a brand new multi-year settlement that covers each recorded music and music publishing, the businesses announced on Thursday. WMG owns labels behind standard artists like Dua Lipa, Coldplay, and Ed Sheeran.
The businesses stated in a press launch that “the brand new deal will assist ship new fan experiences, a deeper music and video catalog, additional paid subscription tiers, and differentiated content material bundles.”
Spotify CEO Daniel Ek stated on Tuesday that the corporate will supply a new “superfan” premium tier that can embody further options for subscribers. The feedback come as Spotify has been teasing a hi-fi tier for years.
The deal between Spotify and WMG follows the same one between the music streaming service and Common Music Group (UMG) that was announced two weeks in the past.
With these new offers, Spotify has the chance to launch new choices to draw extra subscribers and enhance income.
“For Spotify, 2025 is a 12 months of accelerated execution, and our companions at Warner Music Group share our dedication to fast innovation and sustained funding in our main music choices,” Ek stated within the press launch. “Collectively, we’re pushing the boundaries of what’s potential for audiences worldwide—making paid music subscriptions extra interesting whereas supporting artists and songwriters alike.”
The deal introduces a direct licensing mannequin with Warner Chappell Music, which has a catalog of over 1 million copyrights within the U.S. and a number of other different nations.
“This main settlement delivers new advantages for artists, songwriters, and followers whereas unlocking additional collaboration that expands the music ecosystem,” stated WMG CEO Robert Kyncl within the announcement. “It’s an enormous step ahead in our imaginative and prescient for higher alignment between rights holders and streaming companies. Along with Spotify, we sit up for rising the worth of music, as we drive development, affect, and innovation.”
The monetary phrases of the brand new deal weren’t disclosed.
On Tuesday, Spotify reported its fourth-quarter earnings and marked its first full 12 months of profitability since its inception 17 years in the past.
Its working earnings for the quarter hit a report €477 million ($509.48 million), contributing to a complete working earnings of €1.4 billion ($1.495 billion) for the 2024 fiscal 12 months. Spotify reported an addition of 35 million month-to-month energetic customers (MAUs), the biggest This autumn web addition within the firm’s historical past, bringing its whole to 675 million.
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