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Title: Spotify benefits from the arrangement

Big labels in the music industry have discovered a hack that is mutually beneficial to them and the shareholders of Spotify. It’s simple: without music (which these labels produce), Spotify becomes redundant, and the labels need Spotify to promote their artists. Although Spotify isn’t the only streaming service, it is popular for its unique “influencer playlists,” which can significantly boost music promotion. Labels have discovered a way to harness this co-dependency by co-operating with one another.High Recognition From LabelsFor successful music promotions, industry giants have discovered Spotify is important. Spotify benefits from the arrangement through the advertising it gains from reputable labels. CDs have begun to generate less revenue because of mobile devices and more digital methods of providing music. The fact that Spotify can give the labels billions of streams from their users, makes them a more feasible option to generate profit. In 2022, Sony Entertainment featured Spotify in its Business Segment Briefings. Sony’s share increase of 33% is proof of its strategy. Other popular streaming services were not included.Although Sony is the biggest music conglomerate in the industry, two other giants contend with it: Universal and Warner.Universal also values Spotify as an asset for music promotion judging by how they are mentioned first in the company’s prospectus. This is considering their partnership with Apple Music, YouTube, etc. Particular artists from both companies are recognized for their successful music promotions on Spotify, such as JuiceWRLD, Drake, Lil Nas x, Harry Styles, etc.The importance of Spotify began to dawn on them in 2021 when Warner Music Group’s Anitta’s song rose to the top of the daily charts. However, their partnership with othe...

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