One of the biggest music Companies in the world Universal Music Group and the record label for Taylor Swift, should now cut a deal with both Apple and Spotify after initially inking an agreement with Amazon Music claims UBS analysts.
Recently the US music group signed a deal with Amazon to explore new product opportunities as Amazon Music continues to expand in audio, audiobooks and video content.
Also on the agenda was the elimination of unlawful AI-generated content and the protect of artists from ongoing fraud.
Amazon UMG contract is believed to contain clauses relating to an increase in the minimum amount that Universal will get from Amazon for each premium subscriber, a move that could see other music Companies such as Sony ask for the same deal.
The analysts claim that if Universal Music comes to similar agreements with other major platforms, Universal’s paid streaming revenue growth could accelerate toward mid-teen percentages next year.
They also top that a framework for introducing new, higher-priced subscription tiers could also be part of the deal.