Spotify signs new deal with Warner Music, introducing subscription tiers

Spotify and Warner Music Group (WMG) have inked a new multi-year deal covering publishing and recorded music. The two companies look to “strengthen their joint commitment to artists, songwriters, and fans, as well as the growth of the music ecosystem through innovative collaboration.”

According to the announcement, the new deal includes a more profound music and visual catalogue, differentiated content bundles, and new paid subscription tiers.  Spotify also says this focuses on the already-established ‘artist-centric’ royalty model, which, according to the service, “rewards and protects the power of artists to attract and engage audiences.” Spotify has received backlash in recent years for their low payouts compared to other streaming services. 

The announcement didn’t specify any financial terms or the number of years agreed upon. Similarly, nothing was specified about the future subscription tiers. However, this deal will likely include funding for the introduction of premium and ‘deluxe’ subscription tiers. Finally bringing the long rumoured HiFi lossless audio features shown off in 2021. 

For reference, Spotify inked a new deal with Universal Music Group last week, which has a similar model in terms of audio streaming. The agreement between the service and the music giant included references to additional subscription tiers included in UMG’s “Streaming 2.0” policies. These policies include fans paying “super-premium” prices for features such as higher-quality audio.

Spotify’s founder and CEO, Daniel Ek, said, “Together, we’re pushing the boundaries of what’s possible for audiences worldwide—making paid music subscriptions more appealing while supporting artists and songwriters alike.”

The new subscription tiers are reportedly being “aggressively pursued” by Spotify and will be introduced this year.

Source: The Verge