Spotify has been a worthy competitor for Apple Music since the start. However, Apple arguably has the edge with artists and music labels because of the tight relationships Eddy Cue and Jimmy Iovine have with industry leaders.
Now, Spotify is reportedly looking to change that by making its own deals with artists and their managers, effectively cutting out the middle man.
As reported by Recode, Spotify has begun licensing a handful of songs directly from artists and their managers, as opposed to going to the music labels for access. Spotify is reportedly paying advances of “several hundred thousand dollars” for a collection of tracks.
Spotify declined to comment on the matter.
It’s important to note that Spotify won’t specifically say they’re trying to cut out the music labels as they still depend on them to stay in business. However, it’s clear that Spotify is testing and working on ways to mitigate music labels, putting more money in their pockets that could potentially heighten the experience for users.
Notably, Apple Music just saw its first major shift under new head, Oliver Schusser, with a new publishing division.