You will be redirected back to your article in seconds

Sony Music-Pledged Spotify Payouts to Artists, Affiliated Indie Labels, Set to Start

Some 100,000 artists and over 2 million titles could potentially take part in $750 million the company earned by selling its SPOT shares.

Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned from the sale of its shares (in April, SME divested half of its 5.707 percent equity stake in Spotify).

Some 100,000 artists and over two million titles will potentially be able to participate. Payments are expected to start in August.

The letter’s contents have not been verified by a Sony Music Entertainment representative as of yet.

The memo outlines the “benefit of the Spotify investment presented SME with a unique opportunity to pay additional compensation to all of our eligible artists and participants.” It continues: “As we liquidate this holding in a disciplined manner over time, we will continue to make payments to all of our eligible artists and participants in the same way.”

According to the letter, the company will utilize an allocation formula which gives equal weight to both  verall revenue for Sony Music Entertainment and its portion of Spotify revenue during the period of ownership, after which SME will share said net proceeds with eligible participants. In addition, the payouts will not be subject to recoupment.

As the end of the working day neared, managers and executives scrambled to make sense of the math, while some received phone calls directly from Sony Music brass to explain.

More Music

  • Rudy

    Beloved Sports Movie 'Rudy' to Receive Live-to-Picture Concert Treatment (EXCLUSIVE)

    Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned […]

  • ICM agents Danielle Beckford (pictured at

    ICM Partners Ups Three to Concert Agents

    Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned […]

  • Shazam

    Apple Closes Shazam Acquisition, Starts Phasing Out Ads

    Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned […]

  • Beastie Boys Announce ‘Event Tour’ Promoting

    Beastie Boys Announce ‘Event Tour’ Promoting ‘Live & Direct’ Book

    Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned […]

  • Luke Wade attends The Television Academy's

    'The Voice': Luke Wade Talks About His Transition From Competing to Casting

    Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned […]

  • The Band Perry Speaks: Why They

    The Band Perry on Being Stuck in Label Limbo and Why They Left Country and Went Indie

    Sony Music is holding true to its pledge that it will distribute profits from its sale of Spotify stock with artists and affiliated labels. A letter distributed on June 14 to “eligible artist and participants,” and obtained by Variety, details how the Tokyo-based entertainment giant will approach potential payouts from the $750 million it earned […]

More From Our Brands

Access exclusive content