To start the premise to the plot, it was only last summer when Spotify hinted their investors about a new global licensing agreement with two out of four of their most promising label partners. However later, it was found out that the claims did not have much practical substantiality while Spotify partners Universal Music Group and Warner Music Group both have reached global deal agreement expiration in 2019.
Cut to April 1 and both Spotify and Warner Music Group released a short statement confirming a global contract. The compact but consolidated statement says that through this global licensing partnership, they are expanding their agreement boundaries across countries with comparatively newer affiliation with Spotify and also across other markets. The collaboration looks forward to promoting more and more Warner music artists and impact the gradual growth of the collective global music industry.
The main criteria of debacle between Spotify on one side and Warner and Universal on another were regarding podcasts. The music labels demanded their share of Spotify subscription revenues irrespective of the choice of content of the subscriber. On the other hand, Spotify reportedly said that if a subscriber is only consuming podcasts then the labels should not get paid.
This news came roughly two months after Warner Chappell Music, Warner’s publishing arm in India addressed and ended a legal dispute in the country. The issue also resulted in the renewal of a global licensing agreement for all of Chappell’s publishing rights.
Warner Music sued Spotify before its launch in the biggest entertainment market of the world India, but Spotify was quick to say that they legally adopted the permissibility rule of allowing radio stations to play Chappell Music tracks. The new agreement allows listeners across the country to listen to some of the biggest names in the industry represented by Warner Music on Spotify’s platform.
Spotify’s market growth in India has rather been slow because of other competitors like Gaana.com or YouTube. However, Spotify and Warner found a middle ground to their disputes and the agreement will pave the way for a bigger market of music in the country.
As per reports, only music streaming services in the country have brought home revenue of $244 this year which is far past that of the U.S market. As a result, the negotiation of justified payment finally came to an end with a deal that will benefit all parties.
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