Spotify Technology SA (SPOT) has signed a new multi-year licensing deal with Vivendi SA's Universal Music Group. "As music's most innovative company and one of Spotify's earliest supporters, UMG will deepen its leading role as an early adopter of future products and provide valuable feedback to Spotify's development team," the companies said in a press release. The Wall Street Journal reported that the new agreement could be a test of the music-streaming company's "two-sided marketplace" strategy ( ). Though terms of the deal weren't disclosed, the WSJ report said that Universal will "serve as a testing and development partner" for various tools and services that Spotify wants music-industry players to pay for. Spotify's goal for the two-sided marketplace is for music artists and labels to pay Spotify for things like marketing and analytics now that more people are streaming songs, the WSJ story said. Spotify shares are up 3% in premarket trading Wednesday. They've gained 98% over the past three months as the S&P 500 has risen 16%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 22, 2020 07:43 ET (11:43 GMT)
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