Spotify to deliver content exclusively to premium subscribers for a limited time under new licensing deal


A number of reports emerged last month suggesting that music streaming behemoth Spotify was in talks with UMG for signing a new licensing agreement that would lower the royalty fees that the company is currently paying and also restrict the availability of some of its content to paying subscribers only for up to two weeks.

In an official statement yesterday, Spotify CEO Daniel Ek revealed that the Sweden-based company has indeed signed a new licensing deal with UMG that foresees some music releases to be available on Spotify's premium tier for two weeks after release.

“Starting today, Universal artists can choose to release new albums on premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy”, said Ek in a statement. “We know that not every album by every artist should be released the same way, and we’ve worked hard with UMG to develop a new, flexible release policy.”

Spotify currently has a staggering 100 million subscribers, but only half of them fall into the premium tier, while the vast majority are streaming music for free. This wasn't doing any good for the company's relationship with labels and artists (as evident from Taylor Swift's swift departure from Spotify in 2014), while the revamped licensing deal aims to amend this.

Further, the new deal will surely play the role of a sweetener for investors ahead of Spotify's supposed upcoming IPO. The company has been considering going public for some time, and has to be heartened by Snap's recent successful IPO.

source: Spotify

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8 Comments

1. Unordinary unregistered

s**tty thing to do

2. vincelongman

Posts: 5728; Member since: Feb 10, 2013

Yep, it sucks that Spotify and Apple Music are competing with exclusively deals Would be better if they focused on improving UX instead

3. gavilan355

Posts: 59; Member since: Mar 19, 2015

actually no - it's not a s**tty thing to do . I am a premium user of spotify and I love their service, but I hated that some songs were exclusive to apple or Tidal only because some artists disliked Spotify's agreement. By doing this those artists will want to put their music back on spotify. Besides, if you pay for the service, you SHOULD be able to get better features than the free users.

7. marorun

Posts: 5029; Member since: Mar 30, 2015

Okay i was looking for something to put on my 256 sd card so i gonna put 100 gb of mp3 and go to hell spotify lol.

8. kiko007

Posts: 7518; Member since: Feb 17, 2016

So you're openly advocating stealing then?

4. cmdacos

Posts: 4267; Member since: Nov 01, 2016

Very smart thing to do actually.

5. bazinga

Posts: 3; Member since: Mar 22, 2017

Do what you gotta do, Spotify. For me personally, it's the best $10 a month I spend.

6. Swordylove

Posts: 209; Member since: Jun 27, 2015

Oh only for the first two weeks of release. *relieved* When I first heard about this, I thought there were going to be permanent Premium-only songs.

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