Spotify and UMG’s new deal could create a “superfan” subscription at a higher price

Spotify and Universal Music Group I fell A new multi-year agreement could lead to a tiered subscription approach aimed at providing additional perks for “superfans.” The two haven’t announced any details, including how many years the deal lasts, but UMG says it’s consistent with their “Streaming 2.0” vision. Provided to investors last year.

UMG Chairman and CEO Sir Lucian Grainge described the agreement as “precisely the kind of partnership development” the company was hoping for when describing Streaming 2.0. This pitch envisioned a “Super-Premium” subscription for superfans that could mean things like early access to music, exclusive deluxe editions, high-resolution audio, and artist Q&As. The companies have been rumored to be discussing such a deal For several months.

UMG also referenced Streaming 2.0 when it signed an agreement with Amazon Music last month International music business He pointed out When news of the Spotify agreement broke ahead of Sunday’s announcement.

The deal also “appears” to result in increased royalty rates, the National Music Publishers Association said He said diverse. The outlet noted yesterday that the NMPA and others criticized Spotify over changes last year that resulted in lower mechanical royalty rates for songwriters, spurring NMPA Complaint to the Federal Trade Commission (FTC)..

Sony Music Publishing has also criticized Spotify’s royalty changes, and even… Thoughtful options To challenge them. It’s not clear whether Sony or any other publishers are in talks to strike similar deals with Spotify, but that may change in light of the UMG deal, which Bulletin board Notes It is Spotify’s first direct deal with a music publisher since the Music Modernization Act was passed in 2018.