Spotify and UMG sign major deal for superfan tiers, but users are skeptical – "Can’t wait to see the price increases!"

Spotify and Universal Music Group (UMG) just slid into a major multi-year collab, and it’s about to shake up the music streaming game. They’re rolling out tiered subscription models specifically for the superfans— the ones who’ve got their favorite artist’s lyrics tattooed on their arm and can name every B-side track.

This deal, announced on January 26, 2025, is Spotify’s first direct licensing agreement with a music publisher since the Music Modernization Act dropped in 2018.

It’s all part of UMG’s "Streaming 2.0" strategy, making sure artists see a bigger chunk of the pie and that fans get even more addicted to streaming.

Social media, on the other hand, couldn't help but inject humor as much as possible. One X (formerly Twitter) user notably stated: "Can’t wait to see the price increases!"

Another user added: "superfans get perks, while the rest of us get ads and buffering 😭"

A user hit with: "That’s why Apple Music is better."

A user highlighted: "it’s not a coincidence that the most streamed artists are all under umg."

A user ironically stated: "Yeah let’s keep all the money at the top and let small artist struggle once again 😂"

A user quipped: "if i subscribe to bruno mars i expect to meet him too."

A user commented: "pay 50% more on ur subscription to receive a video from BRUNO MARS saying thanks:D"

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Key features of the agreement

According to The Verge, UMG chairman and CEO Sir Lucian Grainge has given out some info. So in simple terms, this deal might give rise to a brand new "Super-Premium" subscription tier.

So, what’s in this "Super-Premium" package? Just early access to fresh music drops, deluxe album releases, high-res audio streaming, and artist Q&A sessions.

But that’s not all. This deal also establishes a direct license between Spotify and Universal Music Publishing Group. That means the Spotify platform just gave Universal’s songwriters a nice, fat royalty payment upgrade.

If you still don’t understand, Spotify’s royalty rates felt like they were more about forgetting to pay artists rather than giving them what they actually deserved. They’re probably fixing that.

And to top it all off, both companies have pledged to protect streaming royalties. No more shady business.

In fact, Spotify’s even stepping up its fraud detection game with a security system that catches the sneaky stuff before it makes it to the front page.

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Streaming 2.0 initiative

Streaming 2.0 is UMG’s latest venture to maximize customer value (whatever that means) while fostering innovation in music subscription services.

In plain speak: they're about to shake up your Spotify experience.

Sir Lucian Grainge stepped up in the press release and declared this partnership as the absolute embodiment of all his dreams for the future. According to him:

“When we first presented our vision for the next stage in the evolution of music subscription several months ago—Streaming 2.0—this is precisely the kind of partnership development we envisioned.”

What’s all this buzz about richer audio and visual content catalogs? Well, it’s not just your old playlist with better sound. Get ready for richer audio and visual catalogs.

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Market reactions and implications

UMG just made a power move, and the stock market noticed. After the big Spotify-UMG deal dropped, Universal Music Group’s share price skyrocketed.

Yesterday, January 27, the stock went up 7.35% from its Friday close, pushing UMG’s price to EUR €26.00 (USD $27.1554) from EUR €24.22 (USD $25.3045).

According to Music Business World, as of Friday, UMG was valued at around EUR €44.30 billion (or USD $46.47 billion). Fast forward to the end of today’s trading, and UMG’s valuation is sitting at EUR €47.56 billion (USD $49.89 billion).

All thanks to the buzz around their Spotify deal.

But Björk, who’s been vocal about how streaming platforms like Spotify are wrecking artists' earnings, went on record saying that Spotify “is probably the worst thing that has happened to musicians.”

Björk was quoted by the Euro News stating:

“The live part is, and always will be, a big part of what I do. I’m lucky because I no longer have to raise money on touring, which younger musicians are often forced to do.”

“In that respect, Spotify is probably the worst thing that has happened to musicians. The streaming culture has changed an entire society and an entire generation of artists.”