Spotify has just signed a major new deal with Warner Music Group (WMG), one of the biggest record labels in the world. This agreement, covering both recorded music and publishing rights, could introduce some changes to the platform. In a statement announcing the deal, Spotify CEO Daniel Ek said:
“For Spotify, 2025 is a year of accelerated execution, and our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings.”
Will this bring better music experiences, or is it just a move to boost profits at the expense of artists and fans?
According to The Verge, the most talked-about part of this deal is the likely introduction of new paid subscription tiers. Spotify has been hinting at a “Super Premium” plan, with high-fidelity (HiFi) lossless audio, better sound quality, and exclusive content. That might sound great – until you realize it could come with a higher price tag. Right now, Spotify already has ads for free users and a Premium plan for paying subscribers. If Spotify adds more expensive tiers, the best features might only be available to those who pay more, making the regular Premium plan feel less valuable – outdated.
Spotify and Warner Music claim this deal will “push the boundaries” of music streaming, making paid subscriptions more attractive. But let’s not forget that Spotify has been criticized for its low payouts to musicians, with the average artist making only $0.003 to $0.005 per stream – meaning it takes thousands of streams just to earn a few dollars.
With new paid subscription tiers, how the money is shared becomes important. If most of the extra revenue goes to Spotify and Warner Music, independent musicians – who depend on streaming but have less power than major-label artists – could be left behind.
Spotify has a history of making major licensing deals with record labels. They recently signed an agreement reestablishing the deal with Universal Music Group (UMG), renewing a multi-year partnership that covers both recorded music and publishing rights. Securing access to top artists while further strengthening the influence of major labels. For big-name artists, these deals mean broader distribution and greater exposure. However, they also give large record companies more control over the industry, making it harder for independent artists to compete.
Music streaming has changed the way people access music, but not always in favor of artists. With the gap widening between major labels and independent artists, the future of music streaming remains uncertain. As Spotify potentially decides on new pricing models, fans and musicians will have to decide whether these changes are worth the cost – or if it’s time to switch to platforms that give fairer payouts to artists.
