Spotify and BMG have reached a groundbreaking multiyear agreement for direct licensing in the US, aimed at benefiting songwriters by providing them with a more significant share of the revenue generated from streaming. The new deal marks a step toward a more flexible licensing model that enhances the relationship between publishers, artists, and streaming platforms.

The partnership emphasizes greater value for songwriters, aligning with both Spotify and BMG’s common objective of ensuring artists receive fairer compensation for their contributions to the music industry. BMG’s decision to take control of its digital business in 2023 paved the way for this deal, granting them the ability to manage relationships with platforms like Spotify more effectively. This move is expected to optimize data use, improve artist services, and streamline operations across BMG’s expansive catalog.

In the deal, Spotify is committed to developing a stronger collaboration with the music industry to help songwriters thrive. Alex Norström, Co-President & Chief Business Officer at Spotify, stated that this partnership aligns with the company’s vision for the future of music, as it seeks to offer more direct support for songwriters through a renewed licensing model.

BMG’s CEO, Thomas Coesfeld, shared his enthusiasm about this new chapter, highlighting that the licensing model reflects real-world music consumption across digital platforms. Coesfeld also emphasized that the partnership with Spotify aligns with BMG’s commitment to fair remuneration and the protection of artists’ rights, especially in light of developments in AI technology.

The deal also underscores the ongoing momentum at BMG in terms of AI protections, aiming to strike a balance between leveraging AI for creativity and ensuring that artists’ works remain protected and rewarded fairly.

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