Spotify, Warner Music Group sign new multi-year distribution deal

(Reuters) - Spotify and Warner Music Group, which owns labels behind artists such as Ed Sheeran and Dua Lipa, signed a new multi-year deal for recording and publishing music, the companies said on Thursday.

Under the deal, Spotify will have a direct license from WMG's music publishing arm Warner Chappell Music, which has a catalog of over 1 million copyrights in the U.S. and several other countries.

The financial terms of the deal were not disclosed. Spotify and WMG declined to comment when contacted by Reuters.

The agreement between WMG and Spotity will expand paid subscription tiers, and introduce new content bundles, the companies said.

The Swedish streaming giant's deal with WMG follows a similar announcement with the world's biggest music label, Universal Music Group , which established a direct license between the two companies across Spotify's portfolio.

The new deals could help the streaming firm introduce new offerings to attract more subscribers. Spotify CEO Daniel Ek said on Tuesday that the company would have personalized offerings, including a premium tier called "superfans of music".

Separately, WMG, which also represents artists such as Adele, Wiz Khalifa and Madonna, acquired rights of a controlling stake in Tempo Music that it said would boost Warner Chappell's catalog.

WMG's shares were down 3.1% in premarket trading. Warner Music on Thursday also reported its first quarter results, with its $1.67 billion revenue coming in line with estimates compiled by LSEG.

(Reporting by Jaspreet Singh in Bengaluru, Editing by Leroy Leo)

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