The music streaming service Spotify says it pays the labels it pays to create and distribute music for its catalog and other music titles.
It also says it offers discounts to those who purchase a digital subscription to its music service.
Spotify is also paying labels for the rights to music, but the terms of those deals are not public.
The music rights for both Apple Music and Spotify’s other streaming service Apple Music expire on January 1.
Both companies are now paying the labels for rights to their music.
Spotify says its deals with labels give the labels a cut of any revenues generated by their music that they can monetize.
Spotify has a long history of paying labels, but it hasn’t disclosed what the deals were.
Spotify’s chief executive officer, Daniel Ek, has been an outspoken critic of the current royalty system.
“We want to make sure that we’re being transparent about how we’re doing business,” Ek told investors in March.
“And we want to be transparent about our deals.”