Once streaming giant Spotify goes public the record labels that were early investors will be able to cash in on their equity in the company. And the major labels have made it known that they’ll be sharing those spoils with others.
Recently Universal Music stated that it would share the money it made from any Spotify stock sales with it’s artists. Now Sony Music has also stated that they’ll be sharing the revenue with the labels it distributes.
Complete Music Update reports:
[WorldWide Independent Network] stated: “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”.
This time Sony Music took the lead by answering this second question in the affirmative. Yes, it will share its Spotify equity cash with the labels it distributes.
However, there is no real sense of what any of that means. It’s unclear how the equity profits will be shared, specifically. That does mean that if any stock sales occur, there will be a lot of scrutiny of the actions of the majors that made these commitments.