Spotify and BMG agree multiyear licensing pact

Spotify and BMG have entered into a direct, multiyear US publishing licensing agreement aimed at delivering greater value to songwriters and their teams. The deal establishes a closer working relationship between the two companies, ensuring that BMG’s songwriters share more directly in the revenue generated by their work on Spotify.

The agreement reflects a shift toward more flexible and transparent licensing models that benefit both publishers and artists. By managing rights directly, BMG aims to improve efficiency and strengthen the connection between creators and streaming platforms, allowing its songwriters to gain more from the continued growth of streaming.

Alex Norström, co-president and chief business officer, Spotify: “At Spotify, we believe the future of music depends on stronger collaboration across the industry. Our partnership with BMG advances that vision with renewed support for songwriters through a licensing model that will enhance how music is enjoyed on our platform.”

The partnership follows BMG’s move in late 2023 to take direct control of its digital operations, allowing the company to manage its own streaming relationships. This approach enables BMG to leverage data, enhance artist services, and streamline operations across its extensive global catalog.

Thomas Coesfeld, CEO, BMG: “Working directly with Spotify helps us reinforce our mission to ensure songwriters are fairly represented and rewarded for their work. We’re pleased to agree on a progressive licensing model that reflects the real-world use of music across digital platforms and are excited to take our partnership to the next level as we continue to redefine what a modern music company can be.”

Coesfeld: “We applaud Spotify’s momentum and support their position on developing new AI protections. While we support the use of AI to enhance human creativity, these policies align with BMG’s philosophy and will help ensure that fair remuneration and protection of artists’ works remain nonnegotiable.”

The agreement signals a broader industry trend toward more direct, collaborative relationships between publishers and streaming services, with both companies emphasizing fairness, flexibility, and innovation as the foundation for the future of music licensing.

www.spotify.com

www.bmgproductionmusic.com

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