Audio streaming giant Spotify (SPOT) has struck a new multi-year agreement with Universal Music Group (UMG), the world’s largest record label.
The agreement also includes music publishing, said Spotify in a news release announcing the arrangement with Universal Music.
Specifically, the deal establishes a direct license between Spotify and Universal Music across Spotify’s operations in the U.S. and several other countries.
“Artists, songwriters and consumers will benefit from new and evolving offers, new paid subscription tiers, bundling of music and non-music content, and a richer audio and visual content catalog,” the companies said in the news release.
Spotify has laid off employees, reduced its podcasts, and cut marketing spending over the past year to boost the company’s profitability.
Spotify has also raised prices in the U.S., Canada, and other countries as it capitalizes on demand for its premium, commercial-free streaming tier.
The stock of Spotify has gained 134% over the last 12 months to trade at $510.43 U.S. per share.
