Even though Spotify has become a key component of how music is consumed in the digital age, the streaming service faces financial challenges and, according to some observers, is at risk of going away.
That’s in large part because the company’s contracts with the “big three” music labels — Universal Music Group, Sony Music Entertainment and Warner Music Group — are up for renewal next year. The New York Post cites a label executive warning that the license-renewal talks will be “less collegial” than they were last time around, in 2016.
If Spotify, whose paid subscriber base has grown to 83 million, fails to sign with even one of the big three, it could be disastrous.
“If we don’t renew with Spotify, it would be a bad year for us,” the executive is quoted saying. “But it would be fatal for them.”