A new licensing deal with Warner Music Group means everything is now in place for Spotify to float on the NYSE.
(CCM) — Spotify has overcome the final obstacle that was casting a shadow over the future of its music streaming service with the announcement that it has signed a new licensing deal with Warner Music Group, according to a BBC report. Warner is the last of the big three music labels to renew its licensing terms, and with the deal in place Spotify is now in a position to float itself on the New York Stock Exchange.
The terms of the deal have not been disclosed, but they are likely to be similar to the ones agreed on between Sony Music and Universal. These allow the companies to restrict some new album releases to paying Spotify customers for a short period after release before making them available to Spotify's non-subscribing users as well. "Artists can choose to release new albums on Premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy," Daniel Elk, Spotify's founder, explained at the time of those deals.
Spotify is the largest music streaming service with 60 million paying customers — more than twice as many as rival service Apple Music. Amazon's streaming service is in third place with about 16 million subscribers concentrated in the U.S., the U.K, Germany, and Japan.
Image: © kenary820 - Shutterstock.com