Universal Music Group (UMG), the largest music label globally, and Spotify, the Swedish streaming powerhouse, announced a new multi-year deal for recorded music and music publishing on Sunday.

This new publishing agreement creates a direct licensing arrangement between Spotify and UMG for Spotify's existing product lineup in the U.S. and several other countries, according to their statement.

The companies mentioned that "artists, songwriters, and consumers will gain from fresh and evolving offerings, new paid subscription options, bundled music and non-music content, and an expanded catalog of audio and visual content."

Daniel Ek, Spotify's founder and CEO, noted that this partnership will drive continuous innovation, making music subscriptions more appealing to a wider global audience.

Over the past year, Spotify has made some tough decisions, including layoffs, scaling back on podcasts, and reducing marketing expenses to improve profitability. They've also increased prices for their U.S. plans to take advantage of the demand for premium services.