Spotify has scored its second new major label deal. according to a new report. Sources tell Billboard that the second largest music group has joined Universal Music Group and indie licensor Merlin in completing new multi-year agreements with the top music streamer.
No details of the reported new Sony Spotify deal have leaked, but its likely similar to the new UMG deal that lowers the percentage of revenue that the streamer pays to labels from 55% to 52% as Spotify signs on on paying subscribers. Paid Spotify Premium users return far more revenue per stream to rightsholders than those using its free ad-supported tier.
The Spotify's new deals are designed to encourage the streamer to convert more users from free to paid and position it to become profitable as it grows.
Warner Music Group remains the final major holdout. Closing the deal will make it easier for Spotify to launch a public offering to raise more capital.