Sony Shares Stake
Sony Music announces they will share equity from the sale of its 5.7% stake in Spotify with independent distribution labels. The Worldwide Independent Network had previously questioned if the majors would pass their independent label partners. Sony is thought to be worth more than one billion dollars with Spotify.
A spokesperson had recently made the announcement:
Sony Music will be sharing with its distributed labels.
The Orchard is an American music company owned by Sony. It acts as a distribution partner to several independent labels and artists.
Universal Music Group confirmed that it would be sharing some of its funds with artists as well. UMG became the third major label to commit.
Two other labels, Warner and Sony, also made the commitment back in 2016.
Worldwide Independent Network
Worldwide Independent Network is a platform for the independent music community. Speaking about the three major labels, WIN states:
All three major labels have committed to sharing revenues from the sales of Spotify shares with the artists directly signed to their companies. But WIN has further called on Sony Music Entertainment, Warner Music, and Universal Music Group to give the independent labels distributed by them, and therefore those artists they represent, their corresponding share of any payout received.
All three major labels will own more than two billion dollars in Spotify. Indie labels handled by them make up to 5% of that market share. This means the indie labels could claim at least $100 million from the proceeds of the profits.
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