This is according to a Financial Times report. However, the contracts restrict the tech giant from bundling Apple TV and Apple Music.
The big three labels boast top musicians and a significant share in the global music market, including Ed Sheeran, Beyoncé, Rihanna and Taylor Swift, as well as African stars like Tiwa Savage, Cassper Nyovest, Burna Boy and AKA, among many others.
The new contracts will be set for multiple years. None of the organisations have publicly commented on the deal yet, but more details on the agreements are expected to be revealed soon.
Meanwhile, Spotify is said to be locking new deals with Sony Music and indie agency Merlin as its current contracts with Universal Music and Warner Group have expired.
According to Digital Music News, Spotify will attempt to prevent the Big Three from receiving a portion of its earnings from advertising and artist-promotion tools. This was the case historically and has led to the world’s largest music streaming platform struggle to achieve profitability.
Spotify has no device sales like Apple Music, which can bolster revenue with the sale of iPhones and various other devices. This has shifted Spotify’s focus towards services that promote artists, albums and merch.
Apple Music’s new deal could offer musicians signed to the big three more value, according to a report that suggest the company pays more per stream compared to its competitors.