Spotify, Warner Music Group sign new deal to help deliver ‘further paid subscription tiers'

Core Insights - Spotify and Warner Music Group (WMG) have entered a multi-year agreement covering recorded music and music publishing, aimed at enhancing fan experiences and expanding content offerings [1][2] - The deal follows a similar agreement with Universal Music Group (UMG), positioning Spotify to attract more subscribers and increase revenue [2] - Spotify's CEO emphasized the commitment to innovation and investment in music offerings, with a focus on making paid subscriptions more appealing [3] - WMG's CEO highlighted the benefits for artists and fans, aiming for greater alignment between rights holders and streaming services [4] - Spotify reported its first full year of profitability, with a record operating income of €477 million ($509.48 million) for Q4 and a total of €1.4 billion ($1.495 billion) for the fiscal year 2024 [5] Company Developments - The new agreement with WMG will introduce a direct licensing model with Warner Chappell Music, which holds over 1 million copyrights [3] - Spotify plans to launch a "superfan" premium tier with additional features for subscribers, alongside a long-anticipated hi-fi tier [1][2] Financial Performance - Spotify achieved a record operating income of €477 million ($509.48 million) in Q4, contributing to a total of €1.4 billion ($1.495 billion) for the fiscal year 2024 [5] - The company added 35 million monthly active users (MAUs) in Q4, marking the largest net addition in its history, bringing the total to 675 million [5]