One label can't afford for another to have access to promotional tools it doesn't. With the biggest label on board with Spotify's two-sided marketplace products, Spotify's job negotiating deals with the other labels - Sony, Warner Music Group, and Merlin (which represents a consortium of indie labels) - just got a lot easier. UMG controls about 40% of recorded-music market share in the United States. While labels pay for that promotion, they get some of that revenue back in the form of a royalty payment. And while those products are a small piece of revenue now, Spotify hopes they'll grow into a sizable piece of the business. Currently it offers products like Marquee (which can be used to inform fans when an artist they follow releases a new album) and promoted songs in playlists.

Spotify wants to exempt promoted listening from the revenue pool it shares with labels. It has reportedly been a key point of contention in Spotify's most recent round of negotiations. Getting Universal on board with using its two-sided marketplace products is a big win for Spotify.

Spotify plans to join digital craze