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Spotify’s Newest Pitch to Labels and Musicians: Now You Pay Us

  • Music service needs ad revenue source to reach profitability
  • The three major record labels are balking at Spotify’s plans
Spotify New Partnership Announcement

Photographer: Dia Dipasupil/Getty Images

Spotify Technology SA revived the music business. Now it wants the industry to return the favor.

The streaming giant is asking record labels and artists for money to advertise their songs within its app, arguing that they’ll reach new fans and increase their popularity. The effort is controversial because it’s complicating wider talks over long-term music rights between Spotify and the record companies. The service has already introduced one tool, called Marquee, and is pitching a second, people with knowledge of the matter said.