A smartphone with a headset with Spotify logo are seen in front of a displayed Warner Music logo in this illustration picture taken July 24, 2017. REUTERS/Dado Ruvic
LONDON: Music streaming company Spotify is close to agreeing on a new licensing pact with Warner Music Inc, the last big music royalty deal it needs before pushing ahead with a US stock market listing, four sources familiar with the situation said.
The parties are positive a deal could be signed by September as major issues such as granting loss-making Spotify a more favourable revenue split in return for making some new albums accessible only to its paying subscribers for a defined period have already been agreed, the sources said.
However, the precise revenue split and the size of a potential guaranteed upfront payment to the label, home to artists including Ed Sheeran and Muse, have yet to be agreed, said two of the sources.
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