Spotify and Warner Music Sign Multiyear Deal to Expand Music Streaming Innovations
Spotify and Warner Music Group (WMG) have announced a new multiyear partnership aimed at enhancing their collaboration in recorded music and publishing. The deal, revealed on Thursday, underscores a shared commitment to supporting artists, songwriters, and fans while driving growth in the music industry.
Although financial details were not disclosed, both companies emphasized their focus on expanding audiovisual streaming, enhancing music and video catalogues, and introducing new subscription options and content bundles.
“The agreement builds on our alignment around ‘artist-centric’ royalty models, ensuring that artists are rewarded for their ability to engage audiences,” the companies stated. Additionally, the deal introduces a direct licensing model with Warner Chappell Music in more countries, including the U.S., to further support songwriters.
Spotify CEO Daniel Ek highlighted the significance of the partnership, saying, “For Spotify, 2025 is a year of accelerated execution, and our partners at Warner Music Group share our commitment to rapid innovation. Together, we’re making paid music subscriptions more appealing while supporting artists and songwriters worldwide.”
Warner Music CEO Robert Kyncl echoed the sentiment, expressing optimism about the industry’s future. “We look forward to increasing the value of music through further innovation with Spotify. Our combined recorded music and publishing rights make our catalog essential for any streaming service,” he said.
The deal comes as Warner Music navigates a changing market landscape, reporting a 4.7% revenue decline to $1.66 billion in the first quarter, missing analysts’ expectations of $1.69 billion. However, net income rose 25% to $241 million, bolstered by currency exchange gains and investment returns.
With digital revenue declining 4% year-over-year to $873 million, Warner Music is shifting its strategy toward wholesale pricing models for music distribution, rather than solely relying on streaming service royalties. The label, home to Dua Lipa, Coldplay, Cardi B, and Bruno Mars, aims to expand its market share through deals with key platforms like Spotify and Amazon Music.
Kyncl also addressed concerns about Warner Music’s relationship with TikTok, given the uncertainty surrounding its ownership in the U.S. “There’s a lot of uncertainty for them, but in terms of our exposure, there’s not much to worry about,” he assured analysts.
The Spotify-Warner Music deal signals a major step toward reshaping the future of music streaming, with a focus on sustainability and innovation in the industry.
