Spotify has succeeded in negotiating a reduced royalty rate to Sony Music Entertainment, and is hoping to do the same with Warner.
The service is not, however, getting the deal without offering something in return …
In exchange for the lower payment, Spotify has reportedly agreed to restrict new albums to paying subscribers for two weeks before making them available to those on the free tier.
However, Apple is almost certainly making a profit from its service, while Spotify is still racking up substantial losses – last declared at around $400M. Reuters reports that the deal signed with Sony is designed to help plans for a U.S. stock market listing later this year or early next.
Both services have helped propel streaming audio to a record high of 7.5B streams, up 62% year-on-year.
An Apple Music subscription costs $9.99/month.