Universal Music Group (UMG) isn’t the only major record label striking a deal with Spotify these days. On Thursday, February 6, Warner Music Group (WMG) also reportedly formed a new multiyear agreement with Spotify. In a similar statement, both parties said the deal would “strengthen their joint commitment to artists, songwriters and fans, as well as the growth of the music ecosystem through innovative collaboration.” However, financial detail pertaining to the deal were not disclosed at this time.
“The new deal will help deliver new fan experiences, a deeper music and video catalog, further paid subscription tiers and differentiated content bundles,” a joint statement from WMG and Spotify reads. “The agreement also builds on the companies’ existing alignment around ‘artist-centric’ royalty models that reward and protect the power of artists to attract and engage audiences. Importantly, the new publishing agreement introduces a direct licensing model with Warner Chappell Music in several additional countries including the U.S., reinforcing songwriters’ benefit in this evolving landscape.”
In addition to inking a deal with Spotify, WMG also shared its first-quarter results. While the company’s digital revenue dropped four percent and net revenue fell by nearly five percent, the company’s net income rose 25% to $241 million. Earnings per share also rose by 15 cents to a total of 45 cents. The label hopes for a big year in 2025 as two of its most prominent acts, Cardi B and Bruno Mars, appear to be inching toward the release of their first new albums in nearly a decade.
“We look forward to seeing the value of music increase as we drive growth through further innovation, together with Spotify. It is our increasingly powerful combination of recorded music and music publishing rights that makes our repertoire essential for any service,” WMG CEO Robert Kyncl told analysts during a call on Thursday. “We’re confident in our growth outlook for the future and for the industry, and we’re really happy with our progress, both on the Amazon and Spotify deals, which set a new direction for where we’re headed.”
