Spotify and Kakao Entertainment (formerly Kakao M) entered into a global license agreement to restore K-pop releases on the streaming platform after a fierce dispute.
In early March, many Kakao releases disappeared from the Swedish streaming music service. Spotify excluded them because the license agreement expired. But today, both companies have resumed cooperation.
Kakao Entertainment admits that it suffered heavy losses as a result of the exclusion of its content from the leading music streaming service in the world, which is used by more than 300 million people around the world, of which more than half use paid subscription services.
While some remote content continues to be unavailable. The Swedish streaming service distributed information about the termination of cooperation with Kakao Entertainment on the first day of March. And for 10 days there was a fierce debate, and music lovers from all over the world could not listen to the relevant music content.
The suspension of cooperation caused criticism on social networks, both from fans and from artists. The strict policy of the music streaming service, which requires the simultaneous conclusion of licensing agreements within the country and around the world, largely impedes the promotion of music content uploaded by the authors and performers of the compositions. This, in turn, leads to the loss of a significant part of the profits of music industry figures.
Recall that Spotify paid copyright holders for music content $16 billion in royalties. And profiting from streaming services has become an important source of income for musicians in the face of a global pandemic.