Spotify 2.0
A few weeks ago, reports surfaced that Spotify was renegotiating with major music labels, to address their free-tier service with new albums. Well, the streaming giant confirmed a new agreement with Universal Music Group to implement a new flexible release policy.
Under the license agreement, albums released under the UMG brand, will be two week exclusives for premium subscribers. Luckily, album singles will still be available to free-tier users; but his new revision of the brand unfortunately ends the long-standing policy of granting content to all users.
With Spotify joining the likes of Pandora and Apple Music to make up a majority 51% of all music streaming; the new multi-year partnership with UMG benefits their immediate path to profitability and an IPO. At the moment, they’re still negotiating with Sony Music and Warner Music Group, which both majors could use this Universal deal as their blueprint.
.@Spotify and #UMG announce global, multi-year license agreement. Read more >> https://t.co/6JE5YiZP2D
— Universal MusicGroup (@UMG) April 4, 2017