The streaming service’s latest move has reportedly unsettled major record labels.
After reports originally surfaced in June that Spotify had plans to make licensing deals with independent musical acts and their managers, a new New York Times article says that the streaming service has struck direct deals with artists and managers within the last year.
European regulators have green-lighted Apple’s $400 million acquisition of British song-identifying app Shazam after a six-month investigation it could be anti-competitive.
“After thoroughly analyzing Shazam’s user and music data, we found that their acquisition by Apple would not reduce competition in the digital music streaming market,” EU competition commissioner Margrethe Vestager said.
The fight is ratcheting up tensions between Spotify and its biggest suppliers: Vivendi SA’s Universal Music Group, Sony Corp and Warner Music Group. It also fits a pattern. Spotify routinely introduces or tests new features without much warning or agreement on compensation, industry executives say. In response, they’ve hindered Spotify’s expansion into new territories and moved to bolster ties with its biggest rivals.
Humbolt, an indie-centered streaming music service, vows to pay artists and labels their fair share. Yet, even before its launch, the company has failed to answer one key question – why should music fans and artists choose this clearly inexperienced service?