Spotify will now sign direct deals with musical acts

Kramer Phillips By Kramer Phillips | 2 years ago

Spotify is now trying to cut out the middle man, buying songs directly from artists, according to ReCode. Spotify has typically cut deals with music labels, who already have their own agreements with the artists. By directly dealing with the artists, Spotify could potentially earn more money for both themselves and the artists involved. Spotify has been careful to deny its competition with record labels. Spotify, when pressed on the issue, Spotify CEO Daniel Ek went on at length about the value record labels provide.

Although Spotify may be trying to have it both ways, it is hard to see this in any other light than competing with record labels. 2018 also marked Spotify’s first year as a public offering, bringing even more change to the growing music platform. Some speculate this is only the early stages for the streaming service provider, with much more to come on the horizon.

Spotify is a Swedish company that was launched in 2008. Spotify works on a “freemium” model, allowing users to access come content for free, while other content is exclusive to subscribers who pay a monthly fee. Spotify has steadily grown to be a major force in the music industry.