With Spotify inching closer to their IPO as we head into the fall quarter, they’ve certainly made sure to cover their bases having just inked a brand new multi-license deal with Warner Music Group to ensure that the Warner catalog will remain on Spotify for the foreseeable future.
Warner Music Group joins Univeral Music Group and SONY Music Entertainment, the other two majors, who also inked deals earlier in the summer plus the Merlin Network the “fourth major” which signed its own deal back in April.
While no public information surrounding the deal has been released some topic points may have included a lower royalty rate for Spotify plus discussion about Spotify potentially restricting new albums to its paid user base temporarily upon release.
Merlin represents over 20,000 independent labels as the global right’s agency making them an important figure among the indies. Collectively, the three majors plus Merlin made up approximately 80% of the music market’s record revenue in fiscal 2016.