• Spotify has signed a multi-year deal with Universal Music Group (UMG) making a shockwave in the music streaming industry.
• Spotify users can expect new subscription tiers and more music and non-music content on the platform as part of the deal.
• The deal also promises benefits artists that host their music on the platform.

The world’s biggest music label has signed a new partnership with arguably the world’s best-known music streaming platform, as Universal Music Group (UMG) inks a multi-year contract with Spotify. The monetary exchanges of the deal have not been disclosed.

Among the stipulations of the new agreement, according to a statement from both companies, is that it is centered around Recorded Music and Music Publishing. It is claimed to be “focused on growth, innovation, and the advancement of artists’ and songwriters’ success.”

“This agreement furthers and broadens the collaboration with Spotify for both our labels and music publisher, advancing artist-centric principles to drive greater monetization for artists and songwriters, as well as enhancing product offerings for consumers,” explained Lucian Grainge, Chairman and CEO, Universal Music Group.

Under UMG are most of the world’s most successful music labels, including Def Jam Recordings, Abbey Road, Aftermath Entertainment, Capitol Records, Cash Money Records, EMI, Republic Records, Shady Records, Virgin Music Group and more.

The company already has deals with Spotify rival, Apple Music. Spotify users can expect more subscription tiers, and new content on offer as the deal comes into fruition, including non-music content as well.

“Artists, songwriters and consumers will benefit from new and evolving offers, new paid subscription tiers, bundling of music and non-music content, and a richer audio and visual content catalog,” the statement reads.

“By deepening audience experiences, driving further engagement and amplifying the connection between artists, songwriters and their fans, the collaboration between these two companies will position the industry for continued subscriber growth and retention.”

The agreement also creates a “direct license” between Spotify and Universal Music Publishing Group across the streaming platform’s product portfolio in the US and other countries, again with claims that it will benefit artists on the platform.

Spotify has been boosting its bottom line with mass layoffs of employees and international price hikes for its subscription tiers. Despite these actions, investors have been disappointed by the company’s profit margins.

[Image – Photo by Haithem Ferdi on Unsplash]