Spotify has renewed its global agreement with Warner Music.
“Good news for music lovers: Spotify and Warner Music Group have renewed their global partnership,” Warner Music announced on Instagram this week.
With long-term deals with all three major record labels, Spotify is now in a solid position to go public, which it plans to do this year according to various reports and sources.
“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,” said Ole Obermann, chief digital officer of Warner Music. “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.”
Th terms of the deal were not disclosed. But Spotify, with more than 100 million users including 60 million paying subscribers, is the world’s leading music streaming service, giving the platform unparalleled leverage in the market.
Reports suggest Spotify intends to reach the public stock market via a direct listing, bypassing the traditional share sale. This is expected to occur later this year or early next year at the latest.
The company’s main rivals include Apple Music, which has about half as many paying users, and Google Play Music. The market is saturated now but the category remains hot, according to Warner Music.
“Even with the current pace of growth, there’s still so much potential for music subscription to reach new audiences and territories,” said Obermann.