Spotify and Warner Music Group (WMG) has announced a new multi-year agreement covering both recorded music and music publishing, the company announced Thursday. WMG owns the labels behind popular artists such as Dua Lipa, Coldplay and Ed Sheeran.
“The new agreement will help provide new fan experiences, deeper music and video catalogs, further paid subscription layers and differentiated content bundles,” the company said in a press release.
Spotify CEO Daniel Ek said Tuesday that the company will offer a new “Super Fan” premium tier, including additional features for subscribers. Comments will come as Spotify has been teasing Hi-Fi tier for years.
The Spotify and WMG agreement follows a similar between Music Streaming Service and Universal Music Group (UMG), announced two weeks ago.
These new deals will give Spotify the opportunity to launch new products to attract more subscribers and increase revenue.
“For Spotify, 2025 is a year of execution, and our partners at Warner Music Group share our commitment to rapid innovation and sustainable investment in our leading music products,” said EK. said in a press release. “Together, we are pushing the boundaries of what is possible for audiences around the world.
The agreement introduces a direct licensing model using Warner Chapel Music, which has a catalog of over 1 million copyrights in the United States and several other countries.
“This major deal brings new benefits to artists, songwriters and fans and unlocks further collaborations that expand the music ecosystem,” announced WMG CEO Robert Kink. “It's a huge step forward in our vision for greater integrity between rights holders and streaming services. We look forward to increasing the value of music as we promote growth, impact and innovation along with Spotify. “
Financial conditions for the New Deal have not been revealed.
On Tuesday, Spotify reported fourth quarter revenue, marking its first year profitability since its launch 17 years ago.
Quarterly operating profit reached a record 477 million euros ($509.48 million), and total operating profit for 2024 contributed to a record 1.4 billion euros ($1.495 billion). Spotify reported the largest fourth-quarter addition in its history, the addition of 35 million monthly active users (MAUS), bringing it to 675 million total.