On Jan 26, Reuters reported that Universal Music Group (UMG), the world's largest music label, and the Swedish streaming service Spotify have announced a new multi-year agreement for recorded music and music publishing. According to a joint statement, the agreement establishes a direct licensing deal between Spotify and UMG, covering Spotify's existing product range in the U.S. and several other countries.
The companies mentioned that this partnership will bring benefits to artists, songwriters, and consumers through new subscription options, bundled content offerings, and an expanded library of audio and visual material. Spotify's founder and CEO, Daniel Ek, highlighted that the collaboration aims to drive ongoing innovation, enhancing the appeal of music subscriptions to a global audience.
In recent months, Spotify has oriented its strategy towards improving profitability by scaling back on podcasts, reducing marketing expenditures, and adjusting prices for U.S. subscription plans to cater to the growing demand for premium services.