Spotify Sony Deal With Windowing Confirmed
[UPDATE] Hypebot confirmed late yesterday that Spotify has scored its second new major label deal. The world’s second largest music group has joined Universal Music Group and indie licensor Merlin in completing new multi-year agreements with the top music streamer.
In addition to confirming that Sony has reached a new deal with Spotify, sources tell Hypebot that the terms include windowing, which would allow the label group to keep some tracks and albums from the music streamer’s free tier for up to two weeks.
Thus far, no other details of the 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.
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 all 3 major label deals will pave the way for Spotify to launch an IPO.