Spotify Is In Negotiations With The Music Labels Over Royalties
Spotify is currently in talks with the major music labels to negotiate reductions in the royalties that they pay. They also want to extend the rights so that they can roll out a free pricing tier to mobile devices. Spotify is currently in discussions with Warner Music about changing the rights and fees.
Soon the conversations will take place with Sony Music and Universal Music. Spotify hopes to hit profitability soon and offer a better service to users. Spotify already pays royalty fees that are lower than what Apple, Amazon.com, and Google are paying so it will be an uphill battle for the company.
[Source: The Verge]