Spotify and Warner Music Group have inked a new multi-year deal overlaying publishing and recorded music that goals to “form the way forward for audio-visual streaming.” In its announcement, Spotify says the settlement will broaden the streaming platform’s catalog of audio and visible content material and supply “new paid subscription tiers.”
Spotify and Warner Music Group didn’t disclose monetary particulars for the deal or the variety of years it is going to be in place. No specifics have been included in regards to the future subscription choices both, however it might plausibly embody a “deluxe” streaming tier to ship the long-awaited HiFi lossless audio features Spotify introduced again in 2021.
This hypothesis is bolstered by a similar deal Spotify signed with Universal Music Group last week. That settlement referenced further subscription tiers anchored in UMG’s “Streaming 2.0” rules, which envisions superfans paying “Tremendous-Premium” subscriptions for options like increased high quality audio. Spotify CEO Daniel Ek talked about in remarks for the corporate’s current earnings report that “the upper priced premium tier we’ve mentioned” is predicted to be launched this yr and that Spotify would “aggressively pursue” alternatives to carry new music experiences to the platform.
“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 deal announcement. “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 brand new Warner Music Group settlement additionally introduces a direct licensing mannequin with Warner Chappell Music, which Spotify says “builds on the businesses’ current alignment” round royalty funds for artists. The platform reportedly has lower per-stream artist payout rates than rival providers like Apple Music, YouTube Music, and Amazon Music and has been widely criticized by artists who declare Spotify’s payouts are too small.
Spotify’s world head of music communications Chris Macowski instructed The Verge that Spotify optimizes for “increased total payout,” and attributes rivals’ increased per-stream charges to “low engagement” on providers the place subscribers “take heed to much less music.”
The brand new multi-year settlement comes as Warner Music Group introduced it had bought a controlling stake in Tempo Music. The catalog firm owns rights to songs by Wiz Khalifa, Florida Georgia Line, and Shane McAnally, with Billboard reporting the WMG acquisition deal to be value “a number of hundred million {dollars}.”
Replace, February sixth: Added remark from Spotify on per-stream payout charges.