The music streaming leader has signed a new multi-year deal with the digital rights agency that represents 20,000+ independent record labels.
Editor’s Remarks: Merlin is already Spotify’s fourth biggest supplier of songs, making the global licensing deal an important building block for Spotify’s efforts to create the groundwork for an IPO despite its current loss-making model. Having hooked Universal, the world’s largest record label, with a deal earlier this month allowing Spotify Premium subscribers to ‘window’ albums two weeks earlier, Spotify might now offer the same privilege on Merlin’s huge range of artists. Through Merlin, it gains a host of smaller labels with important names on the other side of the Atlantic, from Beggars Group’s Adele and Radiohead to Warp’s Aphex Twin and Flying Lotus, casting a wider net for monetising opportunities.
What to watch: Spotify AB, Merlin Entertainment, Sony Music Entertainment, Warner Music Group