Spotify Is Said to Seek Reset in Negotiations With Record Labels
- New music releases could be limited to subscription tier
- Streaming service said to seek lower payments to labels
Spotify Ltd., under pressure to file for an initial public offering, is showing renewed urgency in a fresh round of meetings with record labels to nail down long-term licensing deals, according to people familiar with the discussions.
A key element of the talks is moving more Spotify users from its free service to a $10-per-month subscription. The two sides have discussed giving labels the ability to limit some new releases to Spotify’s paid tier, in exchange for letting Spotify pay a lower percentage of its subscription revenue to the labels, the people said. Spotify has also proposed reducing its royalty payments by providing additional data and promotion to artists, said the people, who asked not to be identified discussing private conversations.