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Universal Music Group Shares Jump After New Spotify Deal, Amazon Price Increase

Universal Music Group stock rose on its Spotify deal and the Amazon Music price hike announced this week. Shares gained 11.2% to 26.94 euros ($27.91).

According to the company, the agreement will allow for “new paid subscription tiers,” such as Spotify’s anticipated high-priced superfan offering, and bundling of music and non-music content. After the week’s gain, UMG had recovered nearly all of the 24% decline it suffered after its second-quarter earnings results showed lower-than-expected streaming growth. Warner Music Group (WMG) rose 6.7% to $31.80 as investors likely assumed the company will follow UMG and negotiate a mutually beneficial licensing deal with Spotify later this year.

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