Swedish music streaming company Spotify is close to signing a new licensing deal with Warner Music, the last big music royalty agreement it needs before pushing ahead with a U.S. stock market listing. Fred Katayama reports.
Sources say Swedish music streaming service Spotify is close to signing a new licensing deal with Warner Music. The companies are still negotiating revenue split and the size of an upfront payment to the label. But sources say the deal will likely be signed by September. Earlier this year, Spotify was able to lower its royalties in an agreement with Universal Music Group. More recently, it signed a similar pact with Sony Music. In less than a decade, Spotify has grown into the world's most popular streaming music service. It now has more than 140 million active users, including 53 million paying subscribers, according to MIDiA Research. It was recently valued at $13 billion. It wants to go public by the beginning of next year. But Spotify faces mounting competition from far bigger internet players, such as Apple and Amazon. All of them want a chunk of a very promising market. According to the Recording Industry Association of America, streaming music services were for the first time responsible for more than half of all music industry revenue in the U.S. last year.