Spotify and Warner Music May Soon Be Nearing a Deal
Sources have told Reuters that the Swedish-powerhouse Spotify is expected to close a deal with Warner Music sometime before September. Spotify is looking to go public by offering shares on the stock market. By closing down a deal with this major label Spotify hopes to convince potential stockholders to participate in the IPO. In one source's own words...
"Given the way talks are progressing, I would be surprised if we don't have a deal in September,"
The sources claim that the new deal will add a program that will restrict certain albums to paying members only. Both parties believe that this will help earn revenue. Warner Music is home to some of the biggest names in dance music including Kaskade, Gorillaz, GTA, Oliver Heldens, and is the parent company to Skrillex's all-star label OWSLA. Alongside these dance stars are a vast number of talented musicians in almost any genre you can think of.
In theory, restricting certain albums might convince some users to switch from free to premium. However, some users may become turned off by the new paywall and find other ways to listen to their music. Only time will tell, but with how much Spotify and the music streaming industry has grown in recent years, I wouldn't bet against them.