×

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

  • Disney Pandora World Of Avatar, Lake

    The Piano Guys Play 'Avatar' Theme in Disney World (Watch)

    The YouTube sensation The Piano Guys have taken a trip to the world of Pandora for a performance of the theme to “Avatar.” Shot in the bioluminescent floating forest in Disney World, cellist Steven Sharp Nelson and pianist Jon Schmidt put their spin on the score to James Cameron’s 2009 blockbuster. The video immerses the [...]

  • usa, california, palm springs, windmills san

    Agua Caliente, Oak View Group Partner to Build New Arena in Palm Springs

    A new sports and entertainment arena is coming to downtown Palm Springs. Today it was announced that the Agua Caliente Band of Cahuilla Indians and Oak View Group (OVG) will partner to build a new state-of-the-art sports and live entertainment venue. Live Nation Entertainment also boards as a strategic partner. The venue’s capacity will seat at [...]

  • MadonnaThe Costume Institute Benefit celebrating the

    Madonna Revives Nightmarish Imagery of Orlando Nightclub Massacre in New Music Video

    Any thoughts that Madonna’s provocative streak might be taking a time-out in 2019 were put to a halt with her release Wednesday of a new music video for her song “God Control,” which portrays a bloody massacre in a nightclub and is peppered with slogans advocating for gun control. Filmed by director Jonas Åkerlund largely in [...]

  • Miley Cyrus

    Miley Cyrus Teases 'Charlie's Angels' Collaboration with Ariana Grande and Lana Del Rey

    Three of the biggest female pop stars have joined forces in a new song for the Elizabeth Banks-directed reboot of “Charlie’s Angels.” In a tweet posted Wednesday, Miley Cyrus hinted at a collaboration between herself, Lana Del Rey, and Ariana Grande in the forthcoming film. Alongside a 14-second teaser, originally posted by Sony Pictures, the [...]

More From Our Brands

Access exclusive content