Spotify has allegedly projected that it will pay Universal Music Group $1 billion over the next two years. Internal emails obtained by the New York Post detailed the streaming service’s financial predictions. The $1 billion figure covers music royalties, ad revenue, and subscription fees. All those payments are projected to account for 16% of Universal’s recorded music revenue by March 2017. Universal also owns a stake in the streaming platform, which means its performance further factors into their financial relationship. Neither company has yet commented on the Post’s report.
Universal’s in-house digital ranks are currently in flux, with two major departures at the end of February. CEO Lucian Grainge is still interested in the online music business, if only to try to “re-design” them.