Spotify and Sony Music Group have reached an agreement for a new multi-year global licensing deal, the companies announced on Wednesday.
The companies didn’t disclose specifics on the deal beyond confirming it includes both recorded music and music publishing, which they said means “songwriters share more directly in the growth of streaming.”
“Sony Music Group and Spotify have long been mutually committed to advancing music streaming and growing the marketplace for all,” Sony Music Group chairman Rob Stringer said in a statement. “This is further reflected in our new agreements where we’re working to develop futuristic approaches that ensure our artists and songwriters remain appropriately compensated for their work, and audiences are getting a high-quality experience that’s ever evolving.”
With Sony secured, Spotify has officially reached new agreements with all three of the major music companies, after announcing new deals with Universal Music Group back in January and Warner Music Group a month later.
For the first time, Spotify now holds direct licensing agreements with all three major music publishers, a notable development after the streaming company caught major heat in the industry last year over Spotify’s controversial audiobook bundling strategy that led to lower payments to publishers and songwriters. The Mechanical Licensing Collective sued over that move, though Spotify won as the suit was dismissed earlier this year.
“Our partnership with Sony is built on a shared drive to shape the future of music,” Spotify CEO Daniel Ek said in a statement. “Together, we’re accelerating the pace of innovation to create powerful new opportunities and increasing revenue for artists and songwriters. These agreements aren’t just a milestone; they’re a catalyst for building a more dynamic and prosperous music ecosystem for everyone.”
