Spotify previously had Sony and Universal onboard but was missing another major label. The company today renewed its license deal with Warner, according to a report from Recode. Spotify is planning to go public later this year or early 2018 and needed this last component to be able to start solidifying things.
Here’s what Warner had to say via Instagram: “It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms. Together with Spotify, we’ve found inventive ways to reinforce the value of music, create additional benefits for artists, and excite their fans all over the world.”
Last April, the company was able to strike a deal with Universal. This deal with Universal included the option to hold back new albums from Spotify’s free tier. This would help Spotify with royalty payouts to labels.
Now that all three major labels are onboard, the company now has all the pieces it needs to have predictable music costs over the next few years. What’s more interesting is that the company is seeking a non-traditional route to go public. They’re trying to skip traditional share sale and want to list directly on the New York Stock Exchange. This decision has been heavily criticized by SEC, Spotify would the first company to ever go public in this way, and be the first on NYSE.
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Good news for music lovers: @spotify and Warner Music Group have renewed their global partnership. Ole Obermann, Chief Digital Officer, WMG, commented on the renewed partnership with Spotify: “It's taken us a while to get here, but it’s been worth it, as we've arrived at a balanced set of future-focused deal terms. Together with Spotify, we've found inventive ways to reinforce the value of music, create additional benefits for artists, and excite their fans all over the world. Even with the current pace of growth, there’s still so much potential for music subscription to reach new audiences and territories."