Spotify Is Finally Proving Its Value to Record Labels
In the early days of Spotify (NYSE: SPOT), its negotiations with record labels were often heated as it asked for more and more concessions and better terms with each renewal. But its latest deal with Vivendi's (OTC: VIVHY) Universal Music Group (UMG) suggests the two sides are more cooperative than ever.
As part of the deal, UMG is signing on to adopt future Spotify products connecting artists with fans and provide feedback for improvement. It's a major step toward Spotify's vision to develop a two-sided marketplace, which will provide a supplementary revenue stream to its consumer-facing subscription and advertising business.
Spotify CEO Daniel Ek. Image source: Spotify.
Source Fool.com
