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 common artists like Dua Lipa, Coldplay, and Ed Sheeran.
The businesses mentioned 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 mentioned on Tuesday that the corporate will supply a new “superfan” premium tier that may embody extra 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 yr 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 mentioned 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 several other different nations.
“This main settlement delivers new advantages for artists, songwriters, and followers whereas unlocking additional collaboration that expands the music ecosystem,” mentioned WMG CEO Robert Kyncl within the announcement. “It’s a giant step ahead in our imaginative and prescient for better alignment between rights holders and streaming companies. Along with Spotify, we look ahead to growing the worth of music, as we drive progress, 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 yr of profitability since its inception 17 years in the past.
Its working revenue for the quarter hit a document €477 million ($509.48 million), contributing to a complete working revenue of €1.4 billion ($1.495 billion) for the 2024 fiscal yr. 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 complete to 675 million.