Sony & Spotify Ink New Multi-Year Deal
Spotify has partnered with Sony on a deal that will encompass both the recorded music and publishing sides of Sony’s business, according to Billboard. Spotify states the “new direct licensing arrangement in the U.S.” will result in higher royalties for songwriters. The deal follows previously made agreements with Universal Music Group, Warner Music Group and Kobalt.
“Our partnership with Sony is built on a shared drive to shape the future of music. Together, we’re accelerating the pace of innovation to create powerful new opportunities and increasing revenue for artists and songwriters,” Daniel Ek, Spotify’s Founder and CEO tells Billboard. “These agreements aren’t just a milestone; they’re a catalyst for building a more dynamic and prosperous music ecosystem for everyone.”
Last spring, Spotify started paying a reduced royalty rate to songwriters and publishers in the U.S. by creating product bundles within its subscription options, resulting in what the National Music Publishers’ Association (NMPA) says was a loss of $230 million in royalties in the first year.
“Sony Music Group and Spotify have long been mutually committed to advancing music streaming and growing the marketplace for all,” adds Rob Stringer, Chairman of Sony Music Group. “This is further reflected in our new agreements where we’re working to develop futuristic approaches that ensure our artists and songwriters remain appropriately compensated for their work, and audiences are getting a high-quality experience that’s ever evolving.”
“These deals with Sony Music Group are built to better support artists and songwriters by unlocking new formats and forging deeper connections with fans,” says Alex Norström, Co-President and Chief Business Officer at Spotify. “This alignment creates space for new opportunities and long-term growth for everyone involved.”
