×

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

  • The Lightning Thief review musical

    Broadway Review: 'The Lightning Thief,' The Musical

    “It’s a lot to take in right now,” says Percy Jackson, the teen hero of “The Lightning Thief,” the kid-centric fantasy musical (based on the popular Y.A. novel) that’s now on Broadway after touring the country and playing an Off Broadway run. You could say that’s a bit of an understatement from contemporary teen Percy [...]

  • Sir Elton John poses for photographers

    Elton John Calls 'Lion King' Remake a 'Huge Disappointment'

    Elton John isn’t feeling the love for Disney’s latest live-action remake. In an interview with GQ U.K., the legendary musician criticized Disney’s remake of “The Lion King,” citing the film’s music as a “huge disappointment.” “The new version of The Lion King was a huge disappointment to me, because I believe they messed the music [...]

  • Fiddlin'

    Film Review: 'Fiddlin''

    Not many forms of music have “old-” actually built into their name as a prefix. So it’s a given that the practitioners of the 200-year-old genre known as “old-time music” will wear their antiquity proudly in “Fiddlin’,” a documentary set in and around the 80th annual Old Fiddler’s Convention in Galax, Va. What may not [...]

  • Beatles white album

    The Beatles to Release Limited Edition ‘Singles Collection’ Vinyl Boxed Set

    The Beatles’ last three years as an active band were their most prolific, with a whopping six albums of material and several singles released during that period (not including their solo and outside projects). Each album since 1967 has been met with a lavish boxed set, and next month the singles will get the same [...]

  • Despacito Luis Fonsi Daddy Yankee

    'Despacito' Tops Vevo's Most-Watched Videos of the Past Decade Chart

    In celebration of its 10-year anniversary, Vevo today announced its Top 10 lists of the decade’s most-watched music videos. Not surprisingly, the Most-Watched Music Video accolade goes to Luis Fonsi’s “Despacito” (featuring Daddy Yankee), with 6.4 billion views since its release in early 2017. The second most-viewed video is Mark Ronson’s “Uptown Funk” (featuring Bruno [...]

  • Bebe Rexha Drops Music Video From

    Bebe Rexha Drops Empowering Music Video From 'Maleficent: Mistress of Evil' (Watch)

    Bebe Rexha has dropped a video for her song “You Can’t Stop the Girl,” the female empowerment theme from Disney’s forthcoming “Maleficent: Mistress of Evil.” Directed by Sophie Muller, the music video features scenes of Rexha reimagined as Maleficent and wandering through the film’s fantasy landscape, leading a marathon of women and snippets of the [...]

More From Our Brands

Access exclusive content