Spotify launched in Germany yesterday with its free tier intact, so how did it persuade collecting society GEMA to support its business model? The answer, startlingly, is that the two parties have yet to finalise their deal. Perhaps more startlingly, GEMA seems relaxed about that, with a final round of negotiations scheduled for 26 March. German site Netzwelt has quotes from CEO Harald Heker. “Spotify is a market participant who has clearly stated their intention to abide by the rules for that game in the country,” Heker said at GEMA’s annual press conference. “I’m very optimistic at the moment that we come together here.” But he confirmed that “There is still no agreement with GEMA.” Music Ally can confirm that Spotify IS paying the society, though, in advance of the final settlement. “Spotify offers a legal service in Germany. We are in ongoing discussions with GEMA to formalise a long-term agreement. We are paying composers and lyricists in Germany, just as we pay composers and lyricists in all other countries in which we operate,” says its spokesperson.
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