Universal Music Group and Spotify reached a new arrangement

Universal Music Group (UMG) (UMG.AS), the world’s largest music label, and Swedish streaming behemoth Spotify (SPOT.N), opened new tab, have agreed a new multi-year agreement for recorded music and music publishing, the companies announced on Sunday.

The publishing arrangement creates a direct license between Spotify and UMG for Spotify’s current product portfolio in the United States and several other countries, according to a statement.

«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,» according to the firms.

Over the last year, Spotify has fired off personnel, reduced podcasts, and slashed marketing spending in order to increase profitability. It has also upped the prices of its U.S. plans in order to capitalize on the high demand for its premium offerings.

Spotify founder and CEO Daniel Ek stated that the cooperation will assure continual innovation, making music subscriptions even more appealing to a bigger global audience.