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Spotify, Warner Chappell Music Deal Supports Global Growth In Streaming

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It was a win-win for music artists and the streaming world early this week when Spotify and Warner Chappell Music, the global music publishing company of Warner Music Group (WMG), announced a new global licensing deal that expands distribution into India. The agreement equips Spotify with a robust song library to attract potential subscribers in an emerging market, exposes WMG label artists to new fans – and moves the entire music streaming industry closer towards global adoption. 

Terms of the multi-territory licensing agreement have not yet been announced, though it settles a licensing dispute between Spotify and Warner Chappell Music over distribution in India. Litigations began last year when Spotify launched in India before securing a licensing agreement with Warner Music, which has been quoted as standing firm on protecting royalty rates for artists. 

“The parties have jointly asked the court to dismiss the pending litigation between the parties, which it has,” said a Warner Chappell spokesperson. “We’re happy with this outcome. This new deal appropriately values our songwriters’ music and expands our licensed partnership with Spotify to include India.”

Last year Spotify reached 1 million users in India, including both free and paid Premium counts. While this figure does not represent a majority of the saturated Indian streaming market, The Indian Music Industry (IMI) reports steady growth and a positive outlook for the future of streaming. The trust’s “Vision 2022: India’s Roadmap to the Top 10 Music Markets in the World by 2022” initiative presents key emerging trends that matter to the Indian market, including new added value, globalized business and “the realization that one can connect with different types of consumers, which was not possible before.” 

According to Statista’s worldwide music streaming report, most revenue is generated in the U.S. at $4,522 million in 2020. Revenue in the music streaming segment is growing and totaled $12,435 million this year. It is expected to increase by 5.7% each year (CAGR 2020-2024) to a market volume of $15,520 million by 2024. With 1,085.7 million users in 2020, user penetration is at 14.6% and expected to reach 16.5% by 2024. The average revenue per user is currently $11.45.

A Spotify spokesperson said in a statement, “In less than a year, millions of Indian listeners have joined Spotify, listening to their favorite artists and songwriters from across the globe. We’re pleased with this agreement, and together with Warner Chappell Music, we look forward to helping songwriters and artists connect with more fans, and for more fans to enjoy and be inspired by their music.” 

While Spotify faces fierce competition from Amazon Music, Apple Music, YouTube Music and other streaming players already serving people in India, the company is now prepared to compete and help further overall expansion in the music streaming industry. 

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