Universal Music Group (UMG), the biggest music label in the world, and the Swedish streaming giant Spotify have signed a new long-term deal for the streaming rights of music made under the UMG label. The company said in a statement on Sunday that this agreement allows Spotify to use UMG’s music and publishing rights in America and other countries worldwide.
Spotify and UMG said in a statement, “Artists, songwriters, and consumers will benefit from new and evolving offers, new paid subscription tiers, bundling of music and non-music content, and a richer audio and visual content catalog.” Spotify CEO and co-founder Daniel EK said this deal will ensure constant innovation in the music industry and the streaming ecosystem. Moreover, he said it will make music subscriptions even more attractive to a global audience.
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Recently, Spotify has laid off employees, pulled back podcasts and cut marketing spending over the last year to ensure profitability. Moreover, it has significantly increased the prices of its US plans, considering the high demand of its premium products in the market.
It is worth noting that the Universal Music Group is home to some of the biggest record labels in the world, like Capitol Records, Republic Records, and Universal Records. This group, in turn, comprises various labels, such as Shady Records by American Rapper EMINEM and XO Records by American R&B artist The Weeknd.