The Merge of two giants. Spotify and Universal Music Group recently inked a new multi-year global license agreement. According to various sources, the two music industry giants reached a deal on Tuesday (April 4).

Spotify subs now have access to new albums by a Universal (UMG) talent for two weeks after its release. In a post by Yahoo News, CEO Daniel Ek stated that "singles are still available on Spotify for listeners."

The world's largest music streaming company had its humble beginnings in 2008. Currently, the service has become the go to streaming app for music enthusiasts.

Spotify has also become a major income generating a platform for the music industry. The majority of its profit go to the rights of stakeholders such as music artists and producers.

Although the music licensing system is a complex area of overlapping and sometimes competing interests and responsibilities, the essence of licensing remains in the context of permission-whether voluntarily negotiated or statutorily compelled.

Universal Music Group (UMG) in the other hand is well-known as the world's largest record label. Under the agreement, UMG will also get unprecedented access to data.

In its joint statement, the merger will "create a foundation for new tools for artists and labels to expand." UMG added that the deal will help artists "build deeper connections with their fans."

Spotify keeps tabs about their listener's habits and profiles based on their preference. According to CNET, musicians will be able to use the demographic data to connect with their fans.

The deal is part of UMG's strategy to adapt to today's music trend. Cd's and other forms of media are now threatened by the popularity of streaming services.

UMG CEO Lucian Grainge said that streaming represents the majority of the music business. He added that the company's challenge is "transforming that upturn into sustainable growth."

Spotify is available to 60 markets and has exceeded 50 million paying subs in early March. The world's largest music streaming service is now in a position to dominate its other competitors.

The multi-year deal with UMG puts them above Apple Music, Deezer, and Napster. Stay tuned for updates.