Sony Music Group and Spotify have announced an extension and expansion of their global partnership that includes a new direct licensing arrangement for publishing in the U.S.
This move is notably significant because Sony — the world’s largest publishing company — was the last major publisher to remain under the statutory rates set by the Copyright Royalty Board; direct licensing allows much more freedom to negotiate, and the announcement states that it will “ensure [that] songwriters share more directly in the growth of streaming.” Universal, Warner and Kobalt publishing have all struck similar deals in recent months.
While terms of the deal were not announced, when Spotify’s pact with Universal was announced in January, sources stressed to Variety that the terms improved at least some of the payment structure of Spotify’s controversial music-audiobooks “bundling” deal, announced last year, which meant a lower mechanical royalty for songwriters and was so roundly condemned by rights-holders that the National Music Publishers Association filed a legal complaint against the streaming giant. It seems likely that similar terms were struck with Sony.
“Our partnership with Sony is built on a shared drive to shape the future of music. Together, we’re accelerating the pace of innovation to create powerful new opportunities and increasing revenue for artists and songwriters,” said Daniel Ek, Spotify’s Founder and CEO. “These agreements aren’t just a milestone; they’re a catalyst for building a more dynamic and prosperous music ecosystem for everyone.”
Rob Stringer, Chairman of Sony Music Group, said, “Sony Music Group and Spotify have long been mutually committed to advancing music streaming and growing the marketplace for all. This is further reflected in our new agreements where we’re working to develop futuristic approaches that ensure our artists and songwriters remain appropriately compensated for their work, and audiences are getting a high-quality experience that’s ever evolving.”
“These deals with Sony Music Group are built to better support artists and songwriters by unlocking new formats and forging deeper connections with fans,” said Alex Norström, Co-President & Chief Business Officer at Spotify. “This alignment creates space for new opportunities and long-term growth for everyone involved.”
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source variety.com ’
