On Sunday, January 26, Spotify and Universal Music Group (UMG) formally announced the launch of a new, multi-year agreement. Both entities say the deal will drive “growth, innovation, and the advancement of artists’ and songwriters’ success.”
“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,” UMG Chairman and Chief Executive Officer (CEO) Sir Lucian Grainge said. “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.”
In a joint statement, UMG and Spotify highlight three outcomes of the multi-year agreement. First, both companies say they 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,” the joint press release reads. “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.”
In addition to close collaboration, the deal establishes a direct license between Spotify and UMG. Rounding out the agreement, Spotify and UMG claim they are committed “to artist-centric principles, ensuring that artists continue to be properly rewarded for the share of audience engagement that they drive.”
“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,” Spotify Founder and CEO Daniel Ek said. “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.”
