(Reuters) – Universal Music Group (AS:), the world's largest music label, and Swedish streaming giant Spotify (NYSE:) have reached a new multi-year agreement for recorded music and music publishing, they said on Sunday.
The publishing agreement establishes a direct license between Spotify and UMG for Spotify's entire current product portfolio in the US and several other countries, they said in a statement.
“Artists, songwriters and consumers will benefit from new and evolving offerings, new paid subscription tiers, music and non-music content bundles, and a richer catalog of visual and audio content,” the companies said.
The partnership will ensure constant innovation, making music subscriptions even more attractive to a broader global audience, said Spotify founder and CEO Daniel Ek.
Spotify has laid off employees, retired podcasts and cut marketing spending over the past year to boost profitability. It has also raised the prices of its US plans to capitalize on demand for its premium products.
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