Spotify has signed a new licensing deal with Warner Music Group, paving the way for the music streaming service to go public.
Warner was the last of the three big record labels to agree to renewed terms to make its catalogue available to Spotify’s 140 million users.
However, Spotify has been forced to agree to some limitations to get the labels to sign.
Artists and labels have in the past complained about minuscule revenue from steaming sites when compared to downloads or physical sales.
But with the deals with Sony, Universal and now Warner in place, Spotify is expected to float on the New York Stock Exchange as early as this year.
“Our partnership with Warner Music Group will help grow the new music economy where millions of artists can instantly connect with fans, and millions of fans can instantly connect with artists,” Spotify’s chief content officer Stefan Blom told the BBC.
‘Inventive ways’
Posting on Instagram, Warner Music chief digital officer Ole Obermann said: “It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms.
“Together with Spotify, we’ve found inventive ways to reinforce the value of music, create additional benefits for artists, and…