New Spotify And Umg Deal Could Create Pricier ‘superfan’ Subscription

Spotify and Universal Music Group person signed a caller multi-year connection that could consequence successful a gradual subscription onslaught aimed astatine providing different perks for “superfans.” The 2 didn’t denote immoderate specifics, including nan number of years nan woody lasts, but UMG says it’s accordant pinch a “Streaming 2.0” imagination it presented to investors past year.

UMG president and CEO Sir Lucian Grainge called nan connection “precisely nan benignant of business development” nan institution hoped for erstwhile describing Streaming 2.0. That position envisioned a “Super-Premium” subscription for superfans that could mean things for illustration early entree to music, exclusive deluxe editions, hi-res audio, and creator Q&As. The companies personification been rumored to beryllium discussing specified a woody for months.

UMG too referenced Streaming 2.0 erstwhile it signed an connection pinch Amazon Music past month, arsenic World Music Business pointed retired erstwhile it collapsed news of nan Spotify connection anterior to Sunday’s announcement. 

The woody too “appears” to summation royalty rates, nan National Music Publishers Association told Variety. The outlet pointed retired yesterday that nan NMPA and others had criticized Spotify complete changes past twelvemonth that led to small mechanical royalty rates for songwriters, spurring an NMPA title to nan FTC.

Sony Music Publishing too criticized Spotify’s royalty changes, and moreover considered options to business them. It’s not clear if Sony aliases immoderate different publishers are successful talks for akin deals pinch Spotify, but that could alteration successful ray of nan UMG deal, which Billboard notes is Spotify’s first nonstop woody pinch a euphony diligent since nan Music Modernization Act passed successful 2018.