Streaming has quite literally changed the game.
And now the rules are shape-shifting too.
Head below for the latest on Spotify‘s major new move and the impact it could have on future releases.
Since its launch, Spotify has offered a paid service while also serving up a free tier. With the primary difference being that one features ads and the other doesn’t.
The strategy has worked handsomely, enabling the Swedish company to become the streaming market leader and a definitive power player in the music business.
Harnessing that clout, the tech giant has struck a new licensing deal with Universal Music that will now allow albums of UMG’s choosing to be made available only on the premium tier of Spotify for two-weeks. Thereafter, free users can listen too.
This, it’s believed, is designed to ramp up paid interaction on the service and ultimately heighten revenue for all involved.
It marks the first time the platform has effectively windowed releases.
Speaking on the landmark move, Spotify CEO Daniel Ek said in a statement:
“We know that not every album by every artist should be released the same way, and we’ve worked hard with UMG to develop a new, flexible release policy.”
Word is that Spotify will provide UMG with access to its data and the two forces will collaborate on marketing campaigns.
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The development is noteworthy on a number of fronts.
Some of music’s biggest names are housed under the UMG umbrella (such as Taylor Swift and Rihanna). As such, their future releases are likely to feature in this new roll-out system.
More than anything, it marks the next evolution in the streaming narrative.
The first seemed to center on which platform could one-up the other with “exclusives,” something now on the wane after UMG’s Lucian Grange announced a stop to the practice by any of his artists.
What we’re seeing now is individual platforms finding new ways to be both competitive and financially astute in an era where less and less are buying music. It’s a smart play.