Spotify and Universal Music Group have signed a new multi-year deal that could lead to the introduction of tiered subscriptions aimed at providing additional privileges for “superfans.” The two companies have not announced any details, including how long the deal will last, but UMG says it is in line with the “Streaming 2.0” vision it presented to investors last year.
UMG chairman and CEO Sir Lucian Grange called the deal “exactly the kind of partnership development” the company was hoping for when it described Streaming 2.0. That presentation talked about a “Super Premium” subscription for superfans, which could mean early access to music, exclusive deluxe editions, high-resolution audio, and Q&As with artists. The companies have been rumored to be discussing such a deal for several months.
UMG also cited Streaming 2.0 when it signed a deal with Amazon Music last month, as World Music Business noted when it reported on the Spotify deal before Sunday’s announcement.
The National Association of Music Publishers told Variety that the deal also “looks likely” to increase royalty rates. Yesterday, the publication noted that the NMPA and other organizations criticized Spotify for last year’s changes that led to lower mechanical royalty rates for songwriters, which led to the NMPA’s complaint to the FTC.
Sony Music Publishing has also criticized Spotify’s royalty changes and even considered challenging them. It is not known whether Sony or other publishers are negotiating similar deals with Spotify, but this may change in light of the UMG deal, which, as Billboard notes, is Spotify’s first direct deal with a music publisher since the Music Modernization Act was passed in 2018.
