Warner finally renews with Spotify, clears the way for IPO

After what seems to have been lengthy and tough negotiations, Warner Music Group (WMG) has finally signed a multi-year global licensing deal with Spotify. 

It was the last of the major labels to do so, after Universal Music in April, and Sony Music Entertainment in the last few weeks even though it has not been officially announced. 

WMG Chief Digital Officer Ole Obermann made the announcement overnight on Instagram.

“It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms,” he said. 

“Together with Spotify, we’ve found inventive ways to reinforce the value of music, create additional benefits for artists, and excite their fans all over the world. 

“Even with the current pace of growth, there’s still so much potential for music subscription to reach new audiences and territories."

Details of the deal were not divulged. But it is expected that it will be similar to that of the other majors. 

One of the agreements would be that Warner acts will have the option of windowing their releases on Spotify’s premium tier for two weeks before it is available on its free service.

The Warner deal was only expected to be signed off in September. 

It clears the decks for Spotify’s IPO later in 2017. 

All Spotify would say, through a statement from Chief Content Officer Stefan Blom, was: "Our partnership with Warner Music Group will help grow the new music economy where millions of artists can instantly connect with fans, and millions of fans can instantly connect with artists."