STOCKHOLM – Swedish Tech music streaming service Spotify announced earlier this month that it has signed a multi-year global license agreement deal with Universal Music Group (UMG). This follows their acquisition of MightyTV – company led by Founder/CEO Brian Adams who will be joining Spotify as VP of Technology, focusing on advertising and marketing technology solutions.
“This partnership is built on a mutual love of music,” said Daniel Ek, Chairman and CEO of Spotify. Creating value for artists and delivering for fans. We will be working together to help break new artists and connect new and established artists with a broadening universe of fans in ways that will wow them both. We know that not every album by every artist should be released the same way, and we’ve worked hard with UMG to develop a new, flexible release policy. Starting today, Universal artists can choose to release new albums on premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy. I want to thank Sir Lucian for his leadership in everything we have done so far and in everything that we will do together to deliver on the promise of the new music economy for all the people who make music and all the people who love it.”
Under the agreement, the companies will advance their partnership to ensure that streaming realizes its full transformational potential for artists, labels and fans by delivering a comprehensive range of music experiences, providing more flexibility for new releases, and collaborating on innovative marketing campaigns across Spotify’s platform.
“Eight years ago, when streaming was a welcome but small source of revenue,” said Sir Lucian Grainge, Chairman and CEO of Universal Music Group. UMG embraced partners like Spotify as a way to help return music to a vibrant future benefitting the entire ecosystem. Working hand in hand with these digital services brought us the industry’s first real growth in nearly two decades. Today, streaming represents the majority of the business. Our challenge is transforming that upturn into sustainable growth. In a market this dynamic, one evolving more rapidly than ever before, success requires creative and continual re-evaluation of how best to bring artists’ music to fans. At UMG, we’ve not only reimagined distribution models and technologies, but entire business models. The only constants must be great music and fair compensation for artists and creators. To that end, the long-term success of Spotify, and others like it, is essential to the ecosystem’s enduring health. I congratulate Daniel on Spotify’s continued growth and innovation, and I look forward to working together with him and his team to develop exciting new ways to connect artists and fans around the world.”
The new agreement will also provide UMG with unprecedented access to data, creating the foundation for new tools for artists and labels to expand, engage and build deeper connections with their fans.