SPOTIFY AND UNIVERSAL MUSIC GROUP ANNOUNCE GLOBAL, MULTI-YEAR LICENSE AGREEMENT
STOCKHOLM AND SANTA MONICA, April 4, 2017 – Spotify, the leading global music streaming service, and Universal Music Group (UMG), the world leader in music-based entertainment, today announced a new, multi-year global license agreement.
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.
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.
In making the announcement, Daniel Ek, Chairman and CEO of Spotify, said, “This partnership is built on a mutual love of music, 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.”
Sir Lucian Grainge, Chairman and CEO of Universal Music Group, said, “Eight years ago, when streaming was a welcome but small source of revenue, 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.”
Spotify is an award-winning digital music service that gives you on-demand access to over 30 million tracks. Our dream is to make all the world’s music available instantly to everyone, wherever and whenever you are. Spotify makes it easier than ever to discover, manage and share music with your friends, while making sure that artists get a fair deal.
Spotify is now available in 60 markets globally with more than 100 million active users, and over 50 million paying subscribers.
Since its launch in Sweden in 2008, Spotify has driven more than US$5bn to rights holders. Spotify is the biggest and most successful music streaming service of its kind globally. www.spotify.com
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About Universal Music Group
Universal Music Group (UMG) is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content in more than 60 countries. Featuring the most comprehensive catalog of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. Universal Music Group is a Vivendi company. Find out more at: http://www.universalmusic.com.