UNIVERSAL Music Group and Spotify Technology reached a new multiyear distribution agreement that includes compensation for recorded songs and publishing rights.
The world’s largest record label and the leader in music streaming said the new deal reflects changes in Spotify’s business model, including new pricing tiers and the bundling of music and non-music content. Financial terms were not disclosed.
Universal, which represents artists such as Taylor Swift and U2, expanded their relationship last year to include teasers of upcoming releases and music videos.
Spotify, which has more than 640 million paid and ad-supported users, has been expanding in recent years to include audiobooks, podcasts and other offerings besides its core music catalogue.
The National Music Publishers’ Association, which represents music publishers and songwriters, filed a complaint with the US Federal Trade Commission in June over Spotify’s decision to provide audiobooks to subscribers, which the group said resulted in reduced royalty payments to songwriters. BLOOMBERG
Share with us your feedback on BT’s products and services
