Spotify’s new Universal deal basically agreed, sources say
By Chris Cooke | Published on Tuesday 4 April 2017
Spotify has a new deal with Universal Music pretty much in its bright green bag, according to sources speaking to the New York Post.
As previously reported, Spotify has been negotiating hard for some time with all three majors to try to get new multi-year deals signed before the streaming firm goes to IPO.
Spotify, which has seen its overall revenue share commitments to the music industry increase in recent years because of efforts by the music publishers to boost their share, was keen to negotiate the record companies down a few percent.
The majors, who will likely have a less strong negotiating hand post Spotify’s IPO, have been busy pushing for other kickbacks in return. That might include the option to window major releases off Spotify’s free service. It’s also thought that Spotify might have to reach certain growth targets to benefit from the better revenue share rate.
The Post’s sources reckon that a deal has now been pretty much agreed between Spotify and Universal, the biggest of all the record companies. The gossipers say that the new arrangement now just needs a final sign off from the CEOs at the streaming firm and the music rights business.
Talks with Sony Music are ongoing, the Post’s sources add.