Spotify inks deal with Universal limiting some new music releases to paid subscribers

Posted:
in General Discussion
Universal Music Group has reversed its course on exclusives, and has signed a deal with Spotify allowing for artists to limit new releases to Premium subscribers only -- with the deal terms reportedly costing Spotify less per subscriber assuming it meets some metrics.




Music Business Worldwide notes that Universal has set subscriber targets in return for reduced payments. Should Spotify fall short, the reduction could be set back, or retracted entirely. Another concession to Universal is allowing for artists to choose to release new albums to Premium subscribers for two weeks, prior to allowing the wider user base to listen.

This partnership is built on a mutual love of music, creating value for artists and delivering for fans," said Chairman and CEO of Spotify Daniel Ek. "We will be working together to help break new artists and connect new and established artists with a broadening universe of fans in ways that will wow them both."

Universal garnered $1.6 billion from streaming platforms in 2016 -- exceeding both physical and download sales, and totaling 43% of its total sales revenue.

Also as part of the deal, Universal claims that it gains "unprecedented access to data" from Spotify users.

In August 2016, a report suggested that a decision by Universal Music Group to end exclusives may have also quashed an Apple Music deal involving Lady Gaga and Universal's Interscope label.

A report from the end of March showed that Apple Music amassed 40.7 million monthly unique users just on mobile in the U.S. in February, well above the 36.2 million users seen by second place Pandora. Spotify took the No. 3 spot with 30.4 million unique users over the same period, while iHeartRadio and SoundCloud placed fourth and fifth with a respective 28.5 million and 25.7 million listeners.

Spotify, however, has 25 percent of daily users, versus Apple's 19 percent, and averages 51 sessions per user, more than four times Apple's 12 sessions per month.

Comments

  • Reply 1 of 8
    lkrupplkrupp Posts: 6,530member
    I guess the free ride is over.
  • Reply 2 of 8
    lostkiwilostkiwi Posts: 578member

    Also as part of the deal, Universal claims that it gains "unprecedented access to data" from Spotify users.
    This seems like the core of the story to me. 
    I'm happy with my Apple Music subscription as they won't 'optimise' your data like Spotify, Google etc.  
    Deelronwatto_cobra
  • Reply 3 of 8
    Universal has a history of making bad decisions. They were mastering letterboxed DVDs long after everybody else had switched to anamorphic. And then there was their idiotic decision to exclusively support HD DVD, which kept the HD disc format war going a couple of more years longer than it needed to. Blu-ray discs would have become as cheap as they are today much sooner without Universal's boneheadedness.
    watto_cobra
  • Reply 4 of 8
    gatorguygatorguy Posts: 19,696member
    sog35 said:
    lostkiwi said:

    Also as part of the deal, Universal claims that it gains "unprecedented access to data" from Spotify users.
    This seems like the core of the story to me. 
    I'm happy with my Apple Music subscription as they won't 'optimise' your data like Spotify, Google etc.  
    I friken hate advertising.

    Advertising/Data mining is the bane of society.
    Oh don't be silly. Advertising has existed since man first sold the first basket of grain in the town market. Somehow we survived, and Apple is is the Apple we know now only because of the power of advertising. They know that, which is why they still spend millions on it every year even tho they have better free promotion of their products via their fanbase and media contacts than just about any company I can think of. 
    edited April 2017
  • Reply 5 of 8
    hawksehawkse Posts: 26member
    sog35 said:
    lostkiwi said:

    Also as part of the deal, Universal claims that it gains "unprecedented access to data" from Spotify users.
    This seems like the core of the story to me. 
    I'm happy with my Apple Music subscription as they won't 'optimise' your data like Spotify, Google etc.  
    I friken hate advertising.

    Advertising/Data mining is the bane of society.
    Maybe then I can AT LAST get relevant ads in Spotify as opposed to the garbage they try to push. Why on earth they don't try to sell me new releases to favourite bands, related genre music and such is a mystery to me. Seems like a massively missed opportunity.
  • Reply 6 of 8
    Rayz2016Rayz2016 Posts: 4,518member
    lostkiwi said:

    Also as part of the deal, Universal claims that it gains "unprecedented access to data" from Spotify users.
    This seems like the core of the story to me. 
    I'm happy with my Apple Music subscription as they won't 'optimise' your data like Spotify, Google etc.  
    Why the hell would Universal tell people this? How stupid are they?
  • Reply 7 of 8
    Rayz2016Rayz2016 Posts: 4,518member

    sog35 said:
    lostkiwi said:

    Also as part of the deal, Universal claims that it gains "unprecedented access to data" from Spotify users.
    This seems like the core of the story to me. 
    I'm happy with my Apple Music subscription as they won't 'optimise' your data like Spotify, Google etc.  
    I friken hate advertising.

    Advertising/Data mining is the bane of society.
    And yet here, a few months ago, on this very forum, you were screaming for Tim Cook's head because he refused to monetise user data to increase the value of the Sogfolio. According to you, people don't care about their private data, so Apple should sell it. 

    I've said it before and I'll say it again: I have no idea how you get out of bed without a rake flying up and hitting you in the face. 
    watto_cobra
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