Spotify and UMG Strike Multi-Year Deal to Reinvent Music Streaming

Universal Music Group and Spotify have signed a new multi-year agreement, covering recorded music and publishing licenses across multiple countries. This partnership aims to enhance consumer offerings through innovation and new subscription models. Spotify's recent cost-cutting measures, including layoffs and price hikes, aim to boost profitability.

Universal Music Group (UMG), the world's largest music label, and Spotify, a Swedish streaming behemoth, announced a new multi-year agreement to streamline recorded music and music publishing rights. The deal encompasses several countries, with the goal of advancing their current product portfolio.

According to a joint statement, this partnership promises to benefit artists, songwriters, and consumers through new subscription tiers and bundled music and non-music offerings. Spotify founder and CEO Daniel Ek highlighted the collaborative effort's potential to make music subscriptions more appealing worldwide.

Despite this milestone, Spotify has faced challenges over the past year, cutting back on podcasts and marketing expenses while reducing its workforce to remain profitable. The company has also increased U.S. subscription prices to better monetize the demand for premium services.

(With inputs from agencies.)