By Maitane Sardon

Shares in Universal Music Group rose after the music label said it signed a multiyear agreement for recorded music and music publishing with Spotify.

Shares in Universal Music were 6.2% higher at 25.73 euros in early European trading on Monday. They have climbed 4.1% year to date.

The agreement establishes a direct license between Spotify and Universal Music across the streaming subscription service's current product portfolio in the U.S. and several other countries, the companies said.

It also ensures that the artists are properly rewarded for the share of audience engagement they drive and that their streaming royalties remain protected, they added.

No details of the transaction were released, but the companies said artists, songwriters and consumers will benefit from new and evolving offers, new paid subscription tiers, bundling of music and non-music content, and a richer audio and visual content catalog, the companies said.

"This agreement furthers and broadens the collaboration with Spotify for both our labels and music publisher, advancing artist-centric principles to drive greater monetization for artists and songwriters, as well as enhancing product offerings for consumers," Universal Music Chief Executive Officer Lucian Grainge said.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

January 27, 2025 03:55 ET (08:55 GMT)

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