The biggest music business story so far this year is: universal music group's very public rift with social video app TikTok.
But there's another widely used app that has a completely different relationship with UMG, the world's largest music copyright holder. As of today (March 28), that relationship will become even closer.
UMG just announced the expansion of what it calls a „strategic relationship.“ spotify.
The companies said they will collaborate on „new promotional and social tools“ for UMG artists on the Spotify platform.
Additionally, new agreements have been concluded. Universal Music Publishing Group (UMPG) will enable Spotify to distribute music videos in the US, which UMG says will enable „deeper experiences with songs, artists, and songwriters.“
spotify revealed Earlier this month, the company announced that it would be releasing full-length music videos in beta to Spotify Premium users in 11 markets, but the US was not included in that list.
If you are a Spotify user based in the United States, intention As it turns out, music videos will also be available as a result of Spotify's new deal with UMPG. (Universal Music His Publishing manages a catalog of approximately 4 million songs).
Universal's expanded deal with Spotify, which includes these videos and a „social tools“ component, comes two months after TikTok lost UMG's catalog in a licensing dispute.
universal music group have Rejected The company decided to renew its licensing agreement with TikTok for a variety of reasons, including the app's compensation for artists and songwriters and UMG's concerns about TikTok's use of AI.
March 1st, Universal Music Publishing UMG's catalog of approximately 4 million songs is no longer permitted for use on TikTok, and its license on TikTok, consisting of approximately 3 million recordings, expired on February 1 (and has not been renewed so far). Added to portfolio.
UMG Chairman and CEO on new Spotify deal Sir Lucian Grainge „We are excited to expand our relationship with Spotify by introducing new content offerings and collaborations that bring a deeper 'social music' experience to the platform. ”
He added, „We are constantly striving to expand opportunities for UMG artists and songwriters to engage with their fans, especially with the introduction of new music and artist-centered initiatives.“
“We are always striving to expand opportunities for UMG artists and songwriters to engage with their fans, especially when it comes to introducing new music and artist-centered initiatives.”
Sir Lucien Grainge
in Second quarter financial results announcement In July of last year, Sir Lucian Grainge UMG has announced that it has signed a „newly expanded agreement“ with Spotify. MBW has learned that the agreement was for a new multi-year term (possibly three years). Global license agreement For UMG content.
In the same financial report, Sir Lucian Graingeand michael nashvice president of Universal Music Group, said Spotify accept element Universal Music Group's „artist-centric“ model new royalty payments Models scheduled to be introduced this quarter (Q1 2024).
In a statement on Thursday, Sir Lucien Grainge added: “Spotify has worked hard to create tools that help maximize attribution and fair compensation for artists and songwriters. This is a win-win partnership between music companies and the platform that will help Innovation, artist compensation, and next-generation fan experiences can coexist and drive the industry forward. ”
The companies announced Thursday that under the new agreement, Spotify will have access to a series of new promotional and social features that „will help artists foster engagement and generate excitement around new releases.“
First, UMG artists will be able to share teasers of upcoming music on Spotify to increase fan engagement and pre-save activity before new releases.
The companies say they will continue to explore additional features that „allow fans to discover artists and help spread the word about new releases.“
They also said Thursday that they will be sharing details about these new tools and how artists, songwriters and fans can take advantage of them in the near future.
„Upcoming features will give artists and their teams more power, allowing them to truly express themselves, promote their work efficiently, and monetize their art more effectively. It will be like this.”
Daniel EkSpotify
Spotify Founder and CEO Daniel Ek added: “UMG has consistently been a progressive partner on behalf of artists and songwriters, contributing to the product development of experimental tools and being an early adopter of them to help artists stand out.
„Upcoming features will give artists and their teams more power, allowing them to truly express themselves, promote their work efficiently, and monetize their art more effectively. It will be like this.”world music business