Music streaming platform Spotify has announced a new deal with Warner Music Group (WMG) that will influence the future of audio-visual streaming. The new collaboration has led to speculations on whether the platform will release new paid subscription tiers. The reference to a similar deal that Spotify signed with Universal Music Group (UMG) last month in regards to “Super Premium” subscriptions has led to the suggestion that a “deluxe tier” will be introduced.
The new deal with WMG, that covers recorded music and publishing, will include a “direct licensing model” with Warner Chappell Music. The subsidiary of WMG is described as its “global publishing arm.” Spotify CEO Daniel Ek announced the new deal in a statement. Ek said, “Our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings. Making paid music subscriptions more appealing while supporting artists and songwriters alike.”
Spotify previously teased the idea of a more expensive “deluxe” subscription service with high-fidelity audio and expanded audiobook access, however, this did not materialize. Spotify’s bosses are enjoying a winning streak, with Ek cashing out almost $100 million in company stock at the end of last year. Meanwhile, Icelandic singer Björk, who has previously released music under the WMG-owned label Elektra Records, recently criticized the music streaming service by calling it “probably the worst thing that has happened to musicians.”
However, the partnership between Spotify and WMG will reshape the audio-visual streaming landscape with new collaborations. Spotify has been pushing the limits of digital music distribution with new partnerships. With this new model, more artists will earn profits without having to seek supplementary measures for fair remuneration.
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