Spotify & Warner Music Group Forge Multi-Year Deal To Elevate Music Streaming

Spotify (NYSE: SPOT) and Warner Music Group (NASDAQ: WMG) have signed a new multi-year agreement aimed at enhancing the music streaming experience while supporting artists and songwriters. The partnership introduces expanded music and video catalogs, new subscription tiers, and an artist-centric royalty model to better reward musicians.

A key highlight of the deal is a direct licensing model with Warner Chappell Music in several new markets, including the U.S., offering songwriters a more direct relationship with Spotify.

Warner Music Group CEO Robert Kyncl emphasized that the collaboration will drive growth, innovation, and added value for artists, songwriters, and fans. Spotify’s CEO Daniel Ek reaffirmed the company’s commitment to evolving the paid music experience and accelerating execution in 2025.

Financially, WMG has maintained strong performance, with 6.4% revenue growth and a 47.8% gross profit margin. The company has consistently rewarded shareholders, raising dividends for five consecutive years, with a current yield of 2.24%.

Beyond this partnership, WMG continues to expand its music rights portfolio, recently acquiring a majority stake in Tempo Music Investments. The company has also undergone stock target adjustments, with UBS and Guggenheim lowering price targets due to foreign exchange pressures but maintaining Buy ratings. Additionally, WMG has amended CEO Robert Kyncl’s compensation structure, shifting performance-based pay to restricted stock units.

As WMG refines its strategy and leadership, this new alliance with Spotify marks a pivotal moment in shaping the future of music streaming.