Spotify might start paying artists increased royalties after agreement with Universal Music Group
Universal Music Group and Spotify announced multi-year agreements for recorded music and music publishing. Under the new agreements, UMG and Spotify claim 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.”
Another interesting piece of information mentioned in the announcement is that the new publishing agreement establishes a direct licensing between Spotify and Universal Music Publishing Group across the music streaming service’s current product portfolio in the United States and several other countries.
This implies that Spotify might finally start paying artists increase royalties, at least in the US and those unnamed countries. Another phares that suggest that is that “the new agreements also renew the companies’ commitment to artist-centric principles, ensuring that artists continue to be properly rewarded for the share of audience engagement that they drive.”
According to Sir Lucian Grainge, Chairman & CEO, Universal Music Group, “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.”
The monetization UMG’s CEO is talking about will probably involve the launch of new paid subscription tiers and/or a price increase of the existing ones. Those increased royalties won’t come from Spotify, but rather from loyal fans who will have to pay more for some extra benefits.
This implies that Spotify might finally start paying artists increase royalties, at least in the US and those unnamed countries. Another phares that suggest that is that “the new agreements also renew the companies’ commitment to artist-centric principles, ensuring that artists continue to be properly rewarded for the share of audience engagement that they drive.”
The new, multi-year agreements between Spotify and Universal Music Group will certainly benefit both equally, especially that the companies have agree to collaborate on the deployment of Streaming 2.0, UMG’s “vision for the next stage in the evolution of music subscription.”
According to Sir Lucian Grainge, Chairman & CEO, Universal Music Group, “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.”
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