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The two companies are renewing their contract together, having first signed up for a partnership in 2015. In a press release they said the new deal would focus on ‘growth, innovation and the advancement of artists’ and songwriters’ success.’
Universal Music Group (UMG) and Spotify have renewed their partnership, having announced a new multi-year deal that is set to bring in ‘the next era of streaming innovation.’
Neither company have offered any specifics on what this new phase involves, aside from a potential tiered subscription model that would provide extra benefits to ‘superfans.’
Based on several preliminary investor pitches last year, it seems this could involve early access to new releases, hi-res audio, listening party invites and artist Q&A sessions, amongst other features.
Rumours around this new deal have been swirling for months.
UMG and Spotify have both stated they they’re renewing their ‘commitment to artist-centric principles,’ which includes ‘a mutually beneficial relationship for songwriters on the platform.’ This will be done through a new license that will be direct between Spotify and UMG’s publishing arms in the US.
In terms of revenue, the two companies said they will ‘ensure that artists continue to be properly rewarded for the share of audience engagement that they drive and that their streaming royalites remain protected through the platform’s application of its fraud detection and enforcement systems.’
This new era is being referred to as ‘Streaming 2.0’ by both parties.
