A new multi-year agreement has been unveiled by Spotify and Warner Music Group (WMG) that covers both recorded music and music publishing, as announced by the companies on Thursday. WMG owns labels behind popular artists like Dua Lipa, Coldplay, and Ed Sheeran.
According to a press release by the companies, “the new deal will help deliver new fan experiences, a deeper music and video catalog, further paid subscription tiers, and differentiated content bundles.”
Spotify CEO Daniel Ek stated on Tuesday that the company will introduce a new “superfan” premium tier with additional features for subscribers. This announcement comes following Spotify’s anticipation of a hi-fi tier for years.
The recent deal between Spotify and WMG follows a similar agreement with Universal Music Group (UMG) that was made public two weeks ago.
These new deals present Spotify with the opportunity to launch new offerings to attract more subscribers and increase revenue.
“For Spotify, 2025 is a year of accelerated execution, and our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings,” Ek mentioned in the press release. “Together, we’re pushing the boundaries of what’s possible for audiences worldwide—making paid music subscriptions more appealing while supporting artists and songwriters alike.”
This deal introduces a direct licensing model with Warner Chappell Music, boasting a catalog of over 1 million copyrights in the U.S. and several other countries.
WMG CEO Robert Kyncl expressed, “This major agreement delivers new benefits for artists, songwriters, and fans while unlocking further collaboration that expands the music ecosystem. It’s a big step forward in our vision for greater alignment between rights holders and streaming services. Together with Spotify, we look forward to increasing the value of music, as we drive growth, impact, and innovation.”
The financial terms of the new deal were not disclosed.
Spotify reported its fourth-quarter earnings on Tuesday, marking its first full year of profitability since its inception 17 years ago.
The operating income for the quarter reached a record €477 million ($509.48 million), contributing to a total operating income of €1.4 billion ($1.495 billion) for the 2024 fiscal year. Spotify also reported an addition of 35 million monthly active users (MAUs), the largest Q4 net addition in the company’s history, bringing its total to 675 million.
