Artist

Spotify and Universal Music Group Sign New Multi-Year Agreement

Published January 26, 2025

Spotify and Universal Music Group have recently announced a significant multi-year agreement concerning recorded music and music publishing. This partnership is centered on growth, innovation, and enhancing the success of artists and songwriters.

The terms of the deal will provide consumers and artists with access to new paid subscription options, bundles that include music alongside other audio content, and an expanded selection of audio-visual offerings. The goal of this collaboration is to usher in a new era of streaming innovation, promoting subscriber growth and retaining existing users by improving interactions between artists and their fans, while also advancing monetization opportunities for music.

As part of the publishing agreement, Spotify will establish a direct license with Universal Music Publishing Group. This will apply across Spotify’s product range in the United States and various other nations, and it is designed to create a mutually beneficial relationship for songwriters using the platform, according to a statement from UMG.

Commitment to Artists

In response to earlier criticisms regarding insufficient royalties for artists, both Spotify and Universal Music Group are reinforcing their commitment to artist-focused principles. This includes implementing measures for fraud detection and enforcement to guarantee that artists receive proper payouts based on audience engagement.

UMG's Chairman & CEO, Sir Lucian Grainge, expressed enthusiasm about the partnership, stating, "When we introduced our vision for the next evolution of music subscription—what we refer to as Streaming 2.0—this is exactly the kind of partnership we had in mind. This agreement enhances our collaboration with Spotify across both our labels and music publishing segment. It aims to promote artist-centric principles that lead to greater monetization for artists and songwriters, ultimately providing richer offerings for consumers."

Spotify's Vision

Daniel Ek, the founder and CEO of Spotify, shared his thoughts on the new deal as well. He noted, "For almost twenty years, Spotify has remained dedicated to revitalizing the music industry. We strive to ensure that artists and songwriters enjoy significant payouts year after year. This collaboration will help us fulfill that promise by recognizing that continuous innovation is essential to making paid music subscriptions more appealing to a wider audience worldwide."

Spotify, Universal, Agreement