While Spotify and Warner Music Group haven’t shared any financial details or the duration of the deal, they also didn’t specify what the new subscription options might entail. However, it’s possible that a “deluxe” streaming tier could be on the horizon, potentially offering the long-anticipated HiFi lossless audio features that Spotify teased back in 2021.
This idea gains traction considering a similar agreement Spotify made with Universal Music Group just last week. That deal hinted at new subscription tiers based on UMG’s “Streaming 2.0” concept, which suggests that superfans might pay for “Super-Premium” subscriptions to access features like higher quality audio. Spotify CEO Daniel Ek noted in the company’s latest earnings report that they expect to roll out “the higher priced premium tier we’ve discussed” this year and that Spotify is keen to explore new music experiences on the platform.
“For Spotify, 2025 is a year of accelerated execution, and our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings,” Ek said in the deal announcement. “Together, we’re pushing the boundaries of what’s possible for audiences worldwide — making paid music subscriptions more appealing while supporting artists and songwriters alike.”
The latest deal with Warner Music Group brings in a new direct licensing model with Warner Chappell Music. Spotify claims this move enhances their existing partnership regarding artist royalty payments. However, Spotify is said to have lower payouts per stream compared to competitors like Apple Music, YouTube Music, and Amazon Music, leading to criticism from artists who feel the payments are inadequate.
Chris Macowski, Spotify’s global head of music communications, shared with The Verge that the platform focuses on achieving a “higher overall payout.” He pointed out that the higher per-stream rates from competitors are often due to “low engagement” on those platforms, where users tend to “listen to less music.”
This new multi-year agreement comes on the heels of Warner Music Group announcing its acquisition of a controlling interest in Tempo Music. Tempo owns rights to tracks from artists like Wiz Khalifa, Florida Georgia Line, and Shane McAnally, with Billboard reporting that the WMG deal is valued at “several hundred million dollars.”