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Universal Music Group (UNVGY.US) and Spotify (SPOT.US) have entered into a new distribution agreement.

Market IntelMonday, Jan 27, 2025 2:01 am ET

1min read

Universal Music Group (UNVGY.US) and Spotify (SPOT.US) have reached a new multi-year distribution agreement, which includes compensation for recorded music and publishing rights. Spotify, the world's largest record company and the leader in the streaming music space, said the new agreement reflects changes in its business model, including new tiered pricing and bundling of music and non-music content. Financial terms were not disclosed.Universal Music Group had already expanded its cooperation with Spotify last year, including previews of upcoming albums and music videos. Spotify has more than 640 million paid and ad-supported users and has been expanding in recent years beyond its core music catalog to include audiobooks, podcasts and other products.The National Music Publishers Association, which represents music publishers and songwriters, filed a lawsuit against Spotify with the Federal Trade Commission in June last year, alleging that Spotify's decision to offer audiobooks to subscribers had resulted in a decrease in royalties paid to songwriters.

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