https://www.ft.com/content/b169046a-09ca-11e7-97d1-5e720a26771b
https://www.ft.com/content/b169046a-09ca-11e7-97d1-5e720a26771b
Spotify is closing in on licensing deals with the worlds largest record labels, hoping to clear a hurdle in the streaming music companys path towards an initial public offering after months of tough negotiations.
As part of the proposed deals, the music companies have agreed to trim the royalty fees that Spotify pays for their songs, according to people familiar with the discussions.
In exchange, Spotify would restrict the biggest album releases to its paid tier for a period of time a substantial concession after years of friction with pop stars including Taylor Swift, who pulled her music from the platform in 2014. Recorded music companies, and the likes of Ms Swift, want to limit Spotifys free service, which generates far less revenues than paid subscriptions.
People close to the matter say licensing talks have picked up considerably and deals could be inked within weeks after months of gridlock, with the caveat that nothing has been signed and talks could again stall.
https://www.ft.com/content/b169046a-09ca-11e7-97d1-5e720a26771b