Universal Music Group (UMG), the global leader in music entertainment, and Spotify, the world’s leading audio streaming service, have unveiled a new multi-year agreement covering both Recorded Music and Music Publishing. This partnership is designed to foster growth, enhance innovation, and position both companies at the forefront of advancing artists’ and songwriters’ success in the evolving music industry.
Revolutionising the Music Subscription Experience
Sir Lucian Grainge, Chairman & CEO of Universal Music Group, shared his enthusiasm about the significance of this new deal: “When we first introduced our vision for the future of music subscription—Streaming 2.0—this is precisely the type of partnership we had in mind. This agreement builds upon and deepens our already strong relationship with Spotify, advancing the key artist-focused principles that drive success for music creators. We aim to foster greater monetisation opportunities for artists and songwriters while continuing to elevate the consumer music experience with even more choice and innovation.”
Spotify’s Commitment to Continued Industry Growth
Daniel Ek, Founder and CEO of Spotify, also shared his excitement about the future prospects of the partnership: “Spotify has been at the forefront of music streaming for nearly two decades. Our commitment to driving growth within the music industry has been unwavering, and this partnership is the next step in fulfilling that commitment. By continuing to invest in innovation and providing better opportunities for artists, songwriters, and fans alike, we can ensure that paid music subscriptions remain compelling and attractive to a broad global audience.”
Collaborating for the Next Era of Streaming Innovation
The new agreements between UMG and Spotify are aimed at advancing the next era of streaming innovation. Both companies have committed to working closely together to develop new and improved offerings for artists, songwriters, and fans. These include new subscription tiers, bundles that combine music and non-music content, and a vastly expanded audio and visual content catalog. By offering more variety and deeper engagement, UMG and Spotify aim to amplify the connection between artists and their audiences, creating an even more immersive experience for listeners. This collaboration is poised to drive long-term growth in subscribers while ensuring that artists continue to benefit from an evolving music landscape.
New Publishing Agreement Strengthens Songwriter Relationships
A key component of the deal is the new publishing agreement that establishes a direct licence between Spotify and Universal Music Publishing Group for Spotify’s existing products in the U.S. and other key markets. This move reinforces the mutually beneficial relationship between Spotify and songwriters, ensuring that creators receive fair compensation and gain greater opportunities for exposure through the platform.
Artist-Centric Principles at the Forefront
The new agreements reaffirm both UMG’s and Spotify’s shared commitment to artist-centric principles. By ensuring that artists are properly compensated based on their audience engagement and implementing robust fraud detection and enforcement measures, the partnership aims to protect streaming royalties and maintain the integrity of the platform. Through these artist-focused initiatives, Spotify and UMG are set to reshape the future of the music industry and ensure that creators continue to thrive in the evolving digital era.
With these developments, UMG and Spotify are laying the foundation for a new wave of innovation and success in the music industry, benefiting artists, songwriters, and music lovers worldwide.