Spotify secures UMG royalty discount | Apr 2017

Sectors: 
Media
Music and Radio
Technology
Companies: 
Apple
Spotify
Vivendi

As Spotify wavers around the breakeven point, the deal with UMG is good news for royalty costs and thus for the likely advent of the IPO rumoured for autumn 2017

Royalty costs will reduce if Spotify reaches the subscriber growth targets that have been agreed – these have not been disclosed, so are hard to track

Question marks persist over whether a two-week optional windowing of new releases on the premium tier will significantly drive upgrades from the free tier

Access Spotify secures UMG royalty discount