Universal Music Group (UMG), the world's largest music label, and Swedish streaming giant Spotify have reached a new multi-year agreement for recording and publishing rights.

The agreement establishes a direct licence between Spotify and UMG for Spotify's entire current product portfolio in the US and several other countries, the two companies said in a statement quoted by Global Banking and Finance Review.

Artists, songwriters and consumers will benefit from new and evolving offerings, new paid subscription tiers, a mix of music and non-music content, and a richer catalog of audio and visual content.

The partnership will ensure continued innovation, making music subscriptions even more attractive to a wider global audience, said Spotify founder and CEO Daniel Ek.

In the past year, Spotify has laid off employees, stopped podcasts and cut marketing spending to boost profitability. It also raised prices on its U.S. plans to capitalize on demand for its premium products. | BGNES