Spotify is reportedly offering advances to artists and management to license their music
The deal does not appear to lock in artists to exclusive contracts with Spotify.
In a new deal, Spotify will now be offering advances to music artists and managers in exchange for being able to license their music on the streaming service, as first reported by Billboard. “Under the terms of some of the deals, management firms can receive several hundred thousand dollars as an advance fee for agreeing to license a certain number of tracks by their independent acts directly to Spotify,” the report explains.
Spotify will reportedly not be buying copyrights to songs and will be offering smaller advances as compared to major labels and distributors. The deal apparently does not limit the music's rights to just Spotify, and artists will still be able to form separate agreements with other streaming services.
Read the full report here.