Indies Demand Spotify Stock Profit Share, Sony Responds
While the major labels have promised to pay their artists a share of any proceeds from the sale of their stock in Spotify, the independent music community is demanding that a corresponding share be passed on the many labels the major label owned companies distribute.
All three major label groups have committed to sharing revenues from the sales of Spotify shares with the artists directly signed to their companies. Now indie trade organization, The Worldwide Independent Music Industry Network (WIN) is calling 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 fair share of any payout.
“It is entirely appropriate that independents, who have given birth to every significant new musical movement over the last 70 years, should take the lead in committing to fair and reasonable treatment of all artists and application of contract terms as the digital era continues to move into uncharted waters,” Martin Mills, Beggars Group Founder and Chair of WIN said in a statement.
Sony will share some of its Spotify proceeds with its indie labels, according to Billboard. Though how fair the distribution well be remains to be sign. Warner Music Group and Universal Music Group, however, are thus far declining comment.
Thousands of independent labels are distributed by companies owned by the majors, whose indie arms include Sony's The Orchard, which now includes RED Sony), WMG's ADA and Universal's Caroline, Capitol Christian Music Group and partially owned INgrooves.