Thursday, April 6, 2017

How Spotify's Deal With Universal Music Will Impact The Streaming Music Industry

I'm not trying to be a pessimist but, how is a deal like this good for anyone but Spotify and Universal Music?

Further details about the deal, such as its fee structure or duration have not been disclosed. It’s likely that Spotify is getting a more favorable percentage on the music licensing fees charged by Universal. This would benefit Spotify’s path to profitability and an IPO. Spotify is still negotiating with the remaining two of the "big three" music labels, Sony Music and Warner Music Group. It may use this deal with Universal as a blueprint.