It was reported by the Financial Times that since Spotify, the Swedish streaming media music service provider was listed on the NYSE in April, 2018, it  has launched its permission negotiations with music copyright owners, which may influence its profit rate in the next few years.

It is vital for Spotify to reach  agreements on authorization with  copyright owners including Universal Music, Sony Music and Warner Music. The  three companies  hold 2/3 of Spotify’s  soundtracks in total.

It is  said that  the negotiation is still at “a very early stage” right now. Normally, such a negotiation may last for several months or even longer. Besides reaching a new agreement, both sides will possibly extend the present agreement to one more year.

In addition, Spotify was also sued by the Warner Music Group because the two companies failed to reach a permission agreement in India.

When asked if the recent incidents would harm the relationship between Spotify and its largest music supplier, Daniel EK, the CEO of Spotify, answered no,, claiming that the bilateral relationship is much better than before.

March 22, 2019

Source: Sina Science &Technology

photo by Spotify