Music streaming service Spotify is close to signing a deal with Warner Music Group that would see artists under the label launch albums exclusively on Spotify's $9.99/month paid subscription tier. Spotify has previously not restricted albums to its paid subscribers, but reports earlier this year said that the service would soon begin practicing in exclusives, and it now appears to be happening with Warner Music artists as the first potential exclusives for Spotify Premium users that would be unavailable to anyone on the free tier.

Spotify and Warner Music's new deal "could be signed by September," according to sources speaking with Reuters. The sources said that some of the biggest parts of the deal have been talked about, including granting Spotify "a more favorable revenue split" in return for Spotify launching Warner Music albums exclusively on its paid tier "for a defined period." However, specific monetary amounts for such a deal, and which of Warner Music's artists would be included -- Ed Sheeran and Muse are under the label's management -- were details that have yet to be ironed out.

spotify logo
One source described the talks as being at "a crossroads," with any potential for a final deal remaining "at bay" until agreements were made on a number of points. Still, talks are said to be "taking place daily," leading other sources close to the deal hopeful for a finalized agreement to come by September. The signing of the deal is said to be Spotify's "last big music royalty deal" ahead of the company's plan to go public on the stock market by late 2017/early 2018.

The parties are positive a deal could be signed by September as major issues such as granting loss-making Spotify a more favorable revenue split in return for making some new albums accessible only to its paying subscribers for a defined period have already been agreed, the sources said.

However, the precise revenue split and the size of a potential guaranteed upfront payment to the label, home to artists including Ed Sheeran and Muse, have yet to be agreed, said two of the sources.

In terms of the revenue split, Spotify is said to be seeking an even 50-50 split with royalties of albums streamed on the service, but Warner Music is hoping to keep at least 52 percent of its albums' royalties on Spotify. Any deal is expected to see a percent of Warner Music's royalties decreased, as the company currently has a 55 percent majority on Spotify royalties. Artist royalties have been the center of negative press for Spotify in the past, leading to the company's acquisition of blockchain technology company Mediachain Labs.

In June, Spotify announced that it has over 140 million global monthly active users, 53 million of which are paid subscribers. According to MIDiA Research detailed in today's Reuters report, that represents about 40 percent of streaming music subscribers worldwide. In comparison, Apple Music is said to have 19 percent of global streaming music subscribers (about 28 million), while Amazon Prime Music accounts for 12 percent (about 16 million subscribers).

For Apple Music, the streaming music service has been repeatedly criticized for its reliance on album exclusives since its launch in the summer of 2015. Last year, Eddy Cue said that exclusives on Apple Music will continue to appear "where appropriate."

Speaking with Reuters last month, Spotify vice president Jonathan Forster said that Apple's rise in the music streaming market has helped Spotify: "It's great that Apple is in the game," Forster said. "They are definitely raising the profile of streaming. It is hard to build an industry on your own."

Tag: Spotify

Top Rated Comments

LordQ Avatar
87 months ago
Apple Music is better anyway.

Score: 12 Votes (Like | Disagree)
modemthug Avatar
87 months ago
Fine by me, folks should pay something for their music
Score: 6 Votes (Like | Disagree)
earthTOmitchel Avatar
87 months ago
Apple Music is better anyway.

Thank you for this much-needed internet lol for Monday.
Score: 6 Votes (Like | Disagree)
gixxerfool Avatar
87 months ago
This is partly why I buy my music. Once in my hard drive, I have it.
Score: 4 Votes (Like | Disagree)
miksohn Avatar
87 months ago
I hope Spotify will be smart enough to make the exclusive artists' catalogs visible to everybody but accessible to premium customers only. That way, the company may entice non-payers to go premium if they see artists they're wild about. If they're not visible, the users' assumption will be that Spotify doesn't have the rights to these artists' stuff.
Score: 3 Votes (Like | Disagree)
MrNomNoms Avatar
87 months ago
Or better buy the CD and rip it into any current or future format out there.
I second that - I either buy the physical copy or buy the lossless DRM free FLAC version. Personally I could never quite understand the attraction of renting music given that I already have over 200GB of music.
Score: 2 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
Generic iOS 18 Feature Purple

iOS 18: What to Expect From 'Biggest' Update in iPhone's History

Wednesday March 27, 2024 11:10 am PDT by
At least some Apple software engineers continue to believe that iOS 18 will be the "biggest" update in the iPhone's history, according to Bloomberg's Mark Gurman. Below, we recap rumored features and changes for the iPhone. "The iOS 18 update is expected to be the most ambitious overhaul of the iPhone's software in its history, according to people working on the upgrade," wrote Gurman, in a r...
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...