Spotify Licensing Agreement

Sir Lucian Grainge, President and CEO of Universal Music Group, said: „With this agreement, UMG and Spotify are more committed than ever to ensuring that the entire music ecosystem thrives and reaches new audiences around the world. Given our commitment to innovation and the early introduction of music technologies and Spotify`s leadership in developing tools of the future, our new partnership will provide our artists with new and powerful opportunities to connect with fans on Spotify`s growing platform. In collaboration, our teams will expand and accelerate our collaboration to provide artistic initiatives, strategic marketing campaigns and new offerings to offer fans exciting new experiences around the world. Spotify and Universal Music Group have entered into a new multi-year global licensing agreement. As part of the agreement announced on Wednesday, July 22, the Label group is deepening its role as early adopter of Spotify`s marketing tools and other tech features that both parties hope to be fostering more impactful connections between fans and artists in innovative ways. The terms of the agreement have not been disclosed, but such agreements usually take two to three years. While Spotify`s negotiations with labels have been an angular and tedious process in the past, according to executives on both sides, they have become more ingenious in recent years, as streaming now generates the bulk of sales for the music industry and prices are set in general. Discussions can take years and Spotify CEO Daniel Ek said companies began discussing the „bilateral marketplace“ two years ago. The gap between Spotify and Warner was public last year, and it focused mainly on expanding Spotify in India in 2019.

Warner and Spotify failed to agree on a publication agreement, so Spotify attempted to use an obscure provision of India`s copyright law to obtain a legal license for the catalogue. Warner then took Spotify to the Bombay Supreme Court and said: „After months of negotiations, Spotify abruptly changed course by wrongly imposing a legal license for the music release rights of our songwriters in India. We had no choice but to seek an injunction from an Indian court to prevent that. However, please note that some aspects of your use of the Spotify service can be settled by additional agreements.

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