Sony Music, Spotify ink multi-year global licensing agreements

Under the agreements, Sony Music Entertainment and Sony Music Publishing have each signed separate deals with Spotify. The agreement with Sony Music Publishing introduces a direct licensing arrangement in the United States, designed to allow songwriters to share more directly in streaming revenue. The deal replaces the previous mechanical royalty structure introduced in March 2024, which reduced payments to publishers and songwriters under Spotify’s audiobook “bundling” system.

The new agreements follow similar direct licensing deals Spotify has signed with other major music publishers. Universal Music Publishing Group and Warner Chappell Music signed agreements in January and February, respectively, and Kobalt reached a US-focused deal last month.

Sony Music Group chairman Rob Stringer said the new partnerships reflect a shared commitment to advancing music streaming and ensuring fair compensation for artists and songwriters.

“Our new agreements are focused on developing innovative approaches that ensure artists and songwriters remain appropriately compensated, while audiences receive a high-quality and evolving listening experience,” he said.

Spotify founder and CEO Daniel Ek described the agreements as a step towards building a “dynamic and prosperous music ecosystem” and increasing opportunities for artists and songwriters. Co-president and chief business officer Alex Norström added that the deals would support new formats and strengthen connections between artists and fans.

The companies indicated that the partnerships will enable “enhanced audio and visual formats” and other new product offerings aimed at improving the listening experience and providing additional avenues for artists to reach audiences. Music videos, which are not yet widely available on Spotify in the US, may be among the new offerings under the agreement.

These licensing agreements form part of Spotify’s broader strategy to secure direct publishing deals with major rights holders and develop innovative content formats. The company has also recently renewed a multi-territory, multi-year licensing deal with Amra, a digital licensing and collection society affiliated with Kobalt, which manages global rights outside the US.