Warner Music Group has finalized a new multi-year licensing agreement with Spotify, including a direct licensing model with Warner Chappell Music. The deal follows Universal Music's recent similar arrangement with the streaming platform.

Key aspects of the new agreement include:

• Enhanced fan experiences and deeper music and video catalog
• New paid subscription tiers and content bundles
• Expanded "artist centric" royalty models
• Direct licensing with Warner Chappell Music in several countries, including the U.S.
• Protection of songwriter benefits in the evolving streaming landscape

During Warner Music's Q4 earnings call, CEO Robert Kyncl also announced a fresh agreement with Amazon Music. The company aims to enable more experimentation across streaming platforms while prioritizing artist and songwriter rights protection.

The agreement comes at a crucial time as subscription revenue growth plateaus for major labels and Spotify faces stagnant Individual subscriber numbers in the U.S. market. The new partnership is expected to support higher-priced tiers and superfan offerings without disrupting existing paid subscriptions.

Warner Chappell's direct licensing arrangement with Spotify mirrors Universal Music Publishing Group's recent move, addressing concerns about streaming royalties for songwriters and publishers.

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