Spotify Set To Pay ‘$2 Billion In Payments To Record Labels’

My question is, are the artists/bands going to see a dime of this money? -Andrew

Last week (NET NEWS 6/15), SPOTIFY VP/Global Head Of Sales BRIAN BENEDIK posted a blog celebrating the fact that the streamer has surpassed 140 million global monthly active users. Wrote BENEDIK, “On the eve of CANNES LIONS 2017, the Advertising Festival of Creativity, this is a particularly meaningful development, as our brand partners now have a bigger opportunity than ever to activate SPOTIFY’s free user base.”

Now, more big news from SPOTIFY, as RECODE reports the company, “will pay music labels billions of dollars over the next two years. In financial filings released this morning, SPOTIFY says it has agreed to pay more than $2 billion in minimum payments to record labels over the next two years. SPOTIFY doesn’t spell out who that money is going to, but people familiar with the company confirm it is talking about two deals it has recently signed with UNIVERSAL MUSIC GROUP, the world’s biggest music label, which has about a third of the market, and MERLIN, which represents a large group of independent labels.”

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