Spotify has signed two high-profile new licensing deals in April: with Warner Music Group, and with Indian music company Shemaroo. A regulatory filing yesterday for Spotify’s Q1 financials shed some light on the terms of those agreements.
“Subsequent to the end of the reporting period, the Group signed license agreements with certain music labels and publishers and podcast agreements with creators. Included in these agreements are minimum guarantee and spend commitments of approximately €171 million over the next year.”
Later in the filing, a table sets out Spotify’s minimum-guarantee contractual obligations: €634m due over the next year; €357m due in between one and three years’ time; and none due between three and five years’ time. Which at least partially answers one analyst’s question from yesterday’s earnings call about whether Spotify’s WMG deal is longer than a two or three year agreement (seemingly not).
Also in the filing: news that Spotify is planning to spend around €135m over the next 12 months on building out offices in LA, New York, Miami, Berlin and Singapore among others.