Spotify and Sony Music Reach License Agreement

Sony Music and Spotify have finally reached a license agreement. As first reported by Billboard on Tuesday July 11, 2017 and confirmed to The Verge by a source close to the situation, the deal will take effect immediately.

Sony Music, one of the world's largest recording companies, has RCA and Columbia and represents artists, ranging from Journey, Avril Lavigne, Future, to The Chainsmokers.

Although the details of the deal were not made public, it is likely that the deal is similar to the terms of the Spotify agreement with Universal Music Group in April.

The multi-year deal gives UMG artists the option to hold the new album from Spotify's free list for two weeks after its release.

Spotify is still pursuing a contract similar to Warner Music Group. This agreement is very important for the company, which needs to find its way to profitability before its planned public offering this year.