As Spotify prepares for IPO, they are under pressure from investors to show they can generate cash. The usually free service got boycotted by some artists as well, as the free streaming service is being criticised for undervaluing artists. The popular music streaming service have not reported their earnings and profits as the company expands.

The multi year global licence agreement could remove some of the doubts from investors while the company prepares for IPO. The deal could be a sweetener to attract Universal Music artists, including Taylor Swift, Adele, Lady Gaga, Coldplay and Kanye West, some of which previously boycotted Spotify.

The agreement states that Spotify will be “delivering a comprehensive range of music experiences, providing more flexibility for new releases, and collaborating on innovative marketing campaigns across Spotify’s platform.” It was also noted that UMG will gain “unprecedented access to data, creating the foundation for new tools for artists and labels to expand, engage and build deeper connections with their fans.”

Daniel Ek, Chairman and CEO of Spotify, said, “We will be working together to help break new artists and connect new and established artists with a broadening universe of fans in ways that will wow them both. We know that not every album by every artist should be released the same way, and we’ve worked hard with UMG to develop a new, flexible release policy.”

Sir Lucian Grainge, Chairman and CEO of Universal Music Group, said, “Working hand in hand with these digital services brought us the industry’s first real growth in nearly two decades. Today, streaming represents the majority of the business. Our challenge is transforming that upturn into sustainable growth.”

“The only constants must be great music and fair compensation for artists and creators. To that end, the long-term success of Spotify, and others like it, is essential to the ecosystem’s enduring health.” he added.