Spotify eyes Warner Music deal

Music streaming company Spotify is close to agreeing a new licensing pact with Warner Music, the last big music royalty deal it needs before pushing ahead with a US stock market listing, according to sources.

The parties are positive a deal could be signed by September as major issues such as granting loss-making Spotify a more favourable revenue split in return for making some new albums accessible only to its paying subscribers for a defined period have already been agreed.

However, the precise revenue split and the size of a potential guaranteed upfront payment to the label, home to artists including Ed Sheeran, have yet to be agreed.