Spotify and Warner Music renew partnership

The new agreement will cover all the countries where Spotify operates as well as additional regions. The streaming service is expected to launch in South Korea soon.

The deal comes after the two companies had been working out of contract for nine months after their previous agreement expired.

The companies released a joint statement after the agreement was finalised.

“Spotify and Warner Music Group are pleased to announce a renewed global licensing partnership,” it reads. “This expanded deal covers countries where Spotify is available today, as well as additional markets.

“The two companies look forward to collaborating on impactful global initiatives for Warner artists and songwriters, and working together to grow the music industry over the long term.”

The two did not disclose any details with regard to the financial terms or length of the contract.

It seems it was not a smooth negotiation between the two parties. The Big Four music labels have been trying to secure a minimum guaranteed percentage of Spotify’s revenue regardless of the amount of music users consume compared to podcasts or other content on the platform, according to the Financial Times.

Spotify argues that some listeners only consume content on podcasts. According to a 2019 report, US listeners were consuming more spoken word formats such as podcasts.

The deal follows a lengthy legal battle in India that Spotify and Warner’s publishing arm, Warner Chappell, recently put an end to.

The publishing company was up in arms over the low rates the streaming giant would have been paying out in the country. Spotify charges users significantly lower prices in India than the rest of the world. When the company launched in the country last year, its Premium service was free for 30 days and cost 119 rupees (about $1.50) a month thereafter.

The announcement gives Spotify users in India access to music by artists signed to Warner Music, including Burna Boy, Cardi B, Ed Sheeran and Coldplay, among many others.