Music streaming giant Spotify and global music company BMG have entered into a direct, multiyear U.S. publishing licensing deal designed to deliver greater value to songwriters and their teams.
"This agreement reflects BMG and Spotify's shared interest in building a direct relationship that ensures songwriters share more directly in the value created by their work," BMG said in a statement.
The agreement marks Spotify's latest direct deal with a prominent music publisher operating in the U.S. and moves its agreement with BMG beyond the traditional CRB model in the market.
"At Spotify, we believe the future of music depends on stronger collaboration across the industry," said Alex Norström, Co-President & Chief Business Officer, Spotify. "Our partnership with BMG advances that vision with renewed support for songwriters through a licensing model that will enhance how music is enjoyed on our platform."
Thomas Coesfeld, CEO of BMG said, "Working directly with Spotify helps us reinforce our mission to ensure songwriters are fairly represented and rewarded for their work. We're pleased to agree on a progressive licensing model that reflects the real-world use of music across digital platforms and are excited to take our partnership to the next level as we continue to redefine what a modern music company can be. "
Universal Music Publishing Group and Warner Chappell Music signed direct licensing deals with Spotify in January and February, respectively.
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