RadioandMusic
| 02 Jun 2020
Spotify, Warner Music Group renew global licensing partnership

MUMBAI: Spotify and Warner Music Group announced on Wednesday to have renewed their global licensing partnership. Music Label songs will be available on the Sweden-headquartered firm’s platform in India. But no deals were made about financial shares.

The two companies said, “Spotify and Warner Music Group are pleased to announce a renewed global licensing partnership. This expanded deal covers countries where Spotify is available today, as well as additional markets. The two companies look forward to collaborating on impactful global initiatives for Warner artists and songwriters, and working together to grow the music industry over the long term.”

To solve the long legal battle, Spotify signed a licensing agreement with Warner Music Group’s music publish arm Warner Chappell in India. Like any other publishing companies Warner Chappell has songwriter and record labels who records works for artist and producer.

Not long ago before Spotify music streaming service was to launch in India, Warner Music sued Spotify. Spotify argued that it was using an Indian rule that permits radio stations to offer songs from Chappell Music.

Spotify was launched in India last year, now with the licensing partnership with Warner Music artist such as Bruno Mars, Ed Sheeran and Cardi B and bands such as Coldplay and Linkin Park songs will be available to Spotify users.

The most disadvantage for Spotify in India was that this popular artist songs weren’t available. Premium subscriptions in India of Music streaming services including Spotify, Apple Music, and recent entrant Resso have increased drastically.

According to the report of industry estimates, more than 200 million Indians stream music online, Gaana leads the market with over 150 million monthly active users. Spotify launches free ad-supported service in India as very few are willing to pay for subscription.

In December Bloomberg reported that YouTube Music / Premium, had amassed over 800,000 subscribers in India, more than Spotify, which has not disclosed its India figures.

According to research firm Statista, music streaming services in India will clock about $244 million in revenue this year, compared to the much mature U.S. market, where they are estimated to generate $4.5 billion this year.

To renew its deals with music labels it wasn’t easy for Spotify. According to Financial Times, music labels were negotiating to secure a guaranteed minimum percentage of Spotify’s subscription revenue, “regardless of how much music users consume versus podcasts or other content.”