Spotify just signed a deal with Warner, all 3 majors now sorted for streaming

Spotify have secured the 3rd major label allowing them to stream all of the top music owned by the 3 majors; Sony, Universal, and now Warner.

It’s been a long time coming but Spotify have at last secured their future, at least for a while having secured deals with all 3 major record labels. As the biggest influence in music across the whole world, the backing of each label is vital to Spotify’s survival.

Warner Music are now the last major label to finalise a deal with the world’s most popular music streaming service – Spotify. This follows deals with Sony and Universal that will allow Spotify to pay less royalties, helping them move towards becoming profitable. In return Spotify will make certain albums Premium exclusive for a period after release, so it has higher returns in its first week-or-so of release. Warner seem to have outlined a similar deal with Spotify.

Whilst each label deal is a big deal in their own right, with all of the massive industry players on-board Spotify are in a far better position to launch their long-planned IPO. Whether they go through with an IPO or not, Spotify now stands in a far more powerful position for investment in general. Whilst their popularity has skyrocketed in recent years Spotify’s debt also mounts up further year-on-year, requiring some heavy investment and/or new business practices (such as the planned windowing of releases).

According to reports investors like Goldman Sachs are getting ready for a potential IPO early in 2018. Though these aren’t confirmed, considering Spotify have spent so long building up to it, it’s likely that they will be keen to push their IPO out as soon as possible now they have support from the 3 major labels.

Head of Social Media and Marketing, RouteNote

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