New Spotify and UMG deal could create pricier ‘superfan’ subscription

Spotify and Universal Music Group have signed a caller multi-year statement that could consequence successful a gradual subscription attack aimed astatine providing other perks for “superfans.” The 2 didn’t denote immoderate specifics, including the number of years the woody lasts, but UMG says it’s accordant pinch a “Streaming 2.0” imagination it presented to investors past year.

UMG president and CEO Sir Lucian Grainge called the statement “precisely the benignant of business development” the institution hoped for erstwhile describing Streaming 2.0. That position envisioned a “Super-Premium” subscription for superfans that could mean things for illustration early entree to music, exclusive deluxe editions, hi-res audio, and creator Q&As. The companies person been rumored to beryllium discussing specified a woody for months.

UMG besides referenced Streaming 2.0 erstwhile it signed an statement pinch Amazon Music past month, arsenic World Music Business pointed out erstwhile it collapsed news of the Spotify statement anterior to Sunday’s announcement. 

The woody besides “appears” to summation royalty rates, the National Music Publishers Association told Variety. The outlet pointed retired yesterday that the NMPA and others had criticized Spotify complete changes past twelvemonth that led to little mechanical royalty rates for songwriters, spurring an NMPA title to the FTC.

Sony Music Publishing besides criticized Spotify’s royalty changes, and moreover considered options to situation them. It’s not clear if Sony aliases immoderate different publishers are successful talks for akin deals pinch Spotify, but that could alteration successful ray of the UMG deal, which Billboard notes is Spotify’s first nonstop woody pinch a euphony patient since the Music Modernization Act passed successful 2018.