WARNER MUSIC GROUP AND SPOTIFY ANNOUNCE NEW MULTI-YEAR AGREEMENT TO FUEL GROWTH AND INNOVATION
Warner Music Group (NASDAQ: WMG) and Spotify have announced a new multi-year agreement covering both Recorded Music and Music Publishing. The partnership aims to enhance the music ecosystem through innovative collaboration, focusing on developing new fan experiences, expanding music and video catalogs, and introducing additional paid subscription tiers and content bundles.
The deal reinforces their commitment to 'artist centric' royalty models and introduces a direct licensing model with Warner Chappell Music in several countries, including the U.S., to better support songwriters. The agreement emphasizes the companies' shared vision for increasing music value and expanding the digital music ecosystem through sustained investment and innovation.
Warner Music Group (NASDAQ: WMG) e Spotify hanno annunciato un nuovo accordo pluriennale che riguarda sia la Musica Registrata che l'Editoria Musicale. La partnership mira a migliorare l'ecosistema musicale attraverso una collaborazione innovativa, con un focus sullo sviluppo di nuove esperienze per i fan, sull'espansione dei cataloghi musicali e video, e sull'introduzione di ulteriori livelli di abbonamento a pagamento e pacchetti di contenuti.
L'accordo rafforza il loro impegno verso modelli di royalty 'artist centric' e introduce un modello di licenza diretta con Warner Chappell Music in diversi paesi, inclusi gli Stati Uniti, per supportare meglio i cantautori. L'accordo sottolinea la visione condivisa delle aziende per aumentare il valore della musica e ampliare l'ecosistema musicale digitale attraverso investimenti e innovazione sostenuti.
Warner Music Group (NASDAQ: WMG) y Spotify han anunciado un nuevo acuerdo multianual que abarca tanto la Música Grabada como la Publicación Musical. La asociación tiene como objetivo mejorar el ecosistema musical a través de una colaboración innovadora, centrándose en desarrollar nuevas experiencias para los fans, expandir los catálogos de música y video, e introducir niveles adicionales de suscripción de pago y paquetes de contenido.
El acuerdo refuerza su compromiso con modelos de regalías 'centrados en el artista' e introduce un modelo de licencia directa con Warner Chappell Music en varios países, incluidos EE. UU., para apoyar mejor a los compositores. El acuerdo enfatiza la visión compartida de las empresas para aumentar el valor de la música y expandir el ecosistema musical digital a través de una inversión e innovación sostenidas.
워너 음악 그룹 (NASDAQ: WMG)와 스포티파이는 녹음 음악과 음악 출판을 모두 포함하는 새로운 다년 계약을 발표했습니다. 이번 파트너십은 혁신적인 협업을 통해 음악 생태계를 향상시키는 것을 목표로 하며, 새로운 팬 경험 개발, 음악 및 비디오 카탈로그 확장, 추가 유료 구독 단계 및 콘텐츠 번들 도입에 중점을 두고 있습니다.
이번 계약은 '아티스트 중심' 로열티 모델에 대한 그들의 약속을 강화하고, 여러 나라, 특히 미국에서 작곡가들을 더 잘 지원하기 위해 워너 채펠 뮤직과의 직접 라이선스 모델을 도입합니다. 이 계약은 지속적인 투자와 혁신을 통해 음악 가치를 높이고 디지털 음악 생태계를 확장하겠다는 기업의 공동 비전을 강조합니다.
Warner Music Group (NASDAQ: WMG) et Spotify ont annoncé un nouvel accord pluriannuel couvrant à la fois la Musique enregistrée et l'Édition musicale. Ce partenariat vise à améliorer l'écosystème musical grâce à une collaboration innovante, en se concentrant sur le développement de nouvelles expériences pour les fans, l'expansion des catalogues de musique et de vidéos, ainsi que l'introduction de niveaux d'abonnement payants et de forfaits de contenu supplémentaires.
Ce contrat renforce leur engagement envers des modèles de redevances 'centriques artistes' et introduit un modèle de licence directe avec Warner Chappell Music dans plusieurs pays, y compris les États-Unis, pour mieux soutenir les auteurs-compositeurs. L'accord souligne la vision commune des entreprises visant à accroître la valeur de la musique et à élargir l'écosystème musical numérique grâce à un investissement et à une innovation soutenus.
Warner Music Group (NASDAQ: WMG) und Spotify haben eine neue mehrjährige Vereinbarung bekannt gegeben, die sowohl die Aufnahmemusik als auch die Musikverlag einschließt. Die Partnerschaft zielt darauf ab, das Musikökosystem durch innovative Zusammenarbeit zu verbessern, wobei der Fokus auf der Entwicklung neuer Fan-Erlebnisse, der Erweiterung von Musik- und Video-Katalogen sowie der Einführung weiterer kostenpflichtiger Abonnementstufen und Inhalts-Pakete liegt.
Der Vertrag verstärkt ihr Engagement für 'künstlerzentrierte' Lizenzmodelle und führt ein direktes Lizenzierungsmodell mit Warner Chappell Music in mehreren Ländern, einschließlich der USA, ein, um Songwriter besser zu unterstützen. Das Abkommen betont die gemeinsame Vision der Unternehmen zur Steigerung des Musikwerts und zur Erweiterung des digitalen Musikökosystems durch anhaltende Investitionen und Innovationen.
- New multi-year agreement expands revenue opportunities through additional paid subscription tiers
- Direct licensing model implementation in new markets including the U.S.
- Enhanced monetization potential through new audio-visual streaming initiatives
- Strengthened 'artist centric' royalty model to potentially improve revenue distribution
- None.
Insights
The newly announced multi-year agreement between Warner Music Group and Spotify marks a pivotal strategic shift in the music streaming landscape, with substantial implications for both companies' market positions and revenue potential. This comprehensive partnership introduces three critical value drivers:
First, the expansion into new subscription tiers and content bundles positions both companies to capture additional market segments and increase average revenue per user (ARPU). This is particularly significant given the mature state of the streaming market in developed countries, where growth increasingly depends on premium offerings and differentiated content.
Second, the introduction of direct licensing with Warner Chappell Music in the U.S. and other markets represents a strategic optimization of the royalty structure. This move typically results in more efficient payment flows and better margins for both parties, while potentially accelerating payment timelines to creators. The emphasis on artist-centric royalty models also aligns with industry trends toward more equitable compensation systems.
Third, the joint focus on audio-visual streaming capabilities signals a strategic push into high-engagement content formats. This positions both companies to better compete with short-form video platforms like TikTok and YouTube, which have been increasingly influential in music discovery and consumption patterns.
The timing and scope of this agreement suggest a defensive strategy against rising competition from social media platforms, while simultaneously creating new revenue opportunities through enhanced content offerings and subscription models. For investors, this represents a potential catalyst for sustainable growth in the streaming sector, particularly as it addresses key industry challenges around monetization and content differentiation.
This strategic partnership represents a significant evolution in music streaming economics, with three key financial implications for the industry. The enhancement of paid subscription tiers and content bundles signals a shift toward premium monetization strategies, addressing the long-standing challenge of streaming profitability.
The expanded direct licensing model with Warner Chappell Music is particularly noteworthy from a financial perspective. By streamlining the licensing process in major markets like the U.S., this agreement should reduce administrative costs and improve margin structures for both parties. The artist-centric royalty model also addresses growing concerns about streaming economics, potentially creating a more sustainable framework for creator compensation.
Most significantly, the joint commitment to audio-visual streaming development suggests a strategic pivot toward higher-value content formats. This move could help capture a larger share of advertising budgets and premium subscription revenues, particularly important as traditional audio streaming growth moderates in mature markets.
For WMG shareholders, this agreement provides multiple paths to value creation: enhanced monetization through new content formats, operational efficiencies from streamlined licensing and strategic positioning in the evolving digital entertainment landscape. The multi-year nature of the agreement also provides valuable revenue visibility and stability for long-term planning.
WMG and Spotify will work together to shape the future of audio-visual streaming and enhance the value of music. The new deal will help deliver new fan experiences, a deeper music and video catalog, further paid subscription tiers, and differentiated content bundles. The agreement also builds on the companies' existing alignment around 'artist centric' royalty models that reward and protect the power of artists to attract and engage audiences. Importantly, the new publishing agreement introduces a direct licensing model with Warner Chappell Music in several additional countries including the
Robert Kyncl, CEO, WMG, said: "This major agreement delivers new benefits for artists, songwriters, and fans, while unlocking further collaboration that expands the music ecosystem. It's a big step forward in our vision for greater alignment between rights holders and streaming services. Together with Spotify, we look forward to increasing the value of music, as we drive growth, impact, and innovation."
Daniel Ek, Spotify's Founder and CEO, said: "For Spotify, 2025 is a year of accelerated execution, and our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings. Together, we're pushing the boundaries of what's possible for audiences worldwide—making paid music subscriptions more appealing while supporting artists and songwriters alike."
About Warner Music Group
Warner Music Group (WMG) brings together artists, songwriters, entrepreneurs, and technology that are moving entertainment culture across the globe. Operating in more than 70 countries through a network of affiliates and licensees, WMG's Recorded Music division includes renowned labels such as 10K Projects, 300 Entertainment, Asylum, Atlantic, Big Beat, EastWest, Elektra, Erato, First Night, Fueled By Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Spinnin', Warner Records, Warner Classics, and Warner Music Nashville. WMG's music publishing arm, Warner Chappell Music, has a catalog of over one million copyrights spanning every musical genre, from the standards of the Great American Songbook to the biggest hits of the 21st century. Warner Music Group is also home to ADA, which supports the independent community, as well as artist services division WMX. Follow WMG on Instagram, X, TikTok, LinkedIn, and Facebook.
About Spotify
Since its launch in 2008, Spotify has revolutionised music listening. Our move into podcasting brought innovation and a new generation of listeners to the medium. In 2022, we took the next leap, entering the fast-growing audiobook market—continuing to shape the future of audio.
Today, more listeners than ever can discover, manage and enjoy over 100 million tracks, 6.5 million podcast titles, and 350,000 audiobooks a la carte on Spotify. We are the world's most popular audio streaming subscription service with more than 640 million users, including 252 million subscribers in more than 180 markets.
Press Contacts:
For Warner Music Group: James Steven james.steven@wmg.com
For Spotify: Chris Macowski cmacowski@spotify.com
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SOURCE Warner Music Group Corp.
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