Spotify and global music company BMG have entered into a direct, multiyear US publishing licensing agreement designed to deliver greater value to songwriters and their teams.

This agreement reflects BMG and Spotify’s shared interest in building a direct relationship that ensures songwriters share more directly in the value created by their work. It’s a practical step toward a more flexible licensing model that better serves both publishers and their artists, ensuring BMG songwriters benefit more directly in the growth of streaming.

“At Spotify, we believe the future of music depends on stronger collaboration across the industry,” said Alex Norström, Co-President & Chief Business Officer, Spotify. “Our partnership with BMG advances that vision with renewed support for songwriters through a licensing model that will enhance how music is enjoyed on our platform.”

The deal serves as the latest step following BMG’s announcement in late-2023 that it was taking direct control of its digital business, enabling the company to manage its own relationships with streaming platforms to leverage data, improve artist services, and streamline operations for its substantial music catalog.

Thomas Coesfeld, CEO of BMG said, “Working directly with Spotify helps us reinforce our mission to ensure songwriters are fairly represented and rewarded for their work. We’re pleased to agree on a progressive licensing model that reflects the real-world use of music across digital platforms and are excited to take our partnership to the next level as we continue to redefine what a modern music company can be.

“We applaud their momentum and support their position on developing new AI protections. While we support the use of AI to enhance human creativity, these policies align with BMG’s philosophy and will help ensure that fair remuneration and protection of artists’ works remain non-negotiable.”