Spotify and Universal Music Group have signed A new multi-year agreement that could lead to a tiered subscription approach aimed at providing additional benefits for “superfans.” The two did not announce any details, including the number of years the deal lasts, but UMG says it is consistent with a vision of “streaming 2.0.” presented to investors last year.
UMG president and CEO Sir Lucian Grainge called the deal “precisely the kind of partnership development” the company was hoping for when describing streaming 2.0. That presentation envisioned a “Super-Premium” subscription for superfans that could mean things like early access to music, exclusive deluxe editions, high-resolution audio, and artist Q&As. The companies are rumored to be discussing such a deal. for months.
UMG also referenced streaming 2.0 when it signed a deal with amazon Music last month, as World music business indicated when he broke news of the Spotify deal ahead of Sunday's announcement.
The deal also “appears” to increase royalty rates, the National Music Publishers Association said Variety. The Outlet noted yesterday that the NMPA and others had criticized Spotify for changes last year that led to lower mechanical royalty rates for songwriters, prompting a NMPA Complaint to the FTC.
Sony Music Publishing also criticized Spotify's royalty changes, and even Options considered to challenge them. It's unclear whether Sony or any other publisher are in talks for similar deals with Spotify, but that could change in light of the UMG deal, which Billboard grades It's Spotify's first direct deal with a music publisher since the Music Modernization Act passed in 2018.