Sony Spotify Agreement

Under the terms of the new UMG/Spotify agreement, universal artists can only release albums to Spotify Premium users – those who pay for a subscription to the service – for up to two weeks, before this product is available in Spotify`s free quota, which pays lower royalties. (Singles are exempt from this rule.) Taylor Swift, a fan of the exclusive destination, returned her albums to Spotify in June – she removed them from the platform in 2014 – in a sign of support for the new deal. Sony Music Entertainment and Spotify reportedly reached a new licensing agreement on Tuesday. Sony Music has responded to a request from Billboard with a statement on the company`s break-up policy, the name of revenue from the recording business that is not intended for artists and that can be `seized` by labels. “Sony Music has in the past shared digital breaks with its artists and voluntarily attributes breaks from all digital services to artist accounts. As part of Sony Music`s “breakage” policy, SME shares with its host artists all unallocated revenues from advances, non-refundable payments and minimum revenue guarantees received by Sony Music under its digital distribution agreements. This applies to all revenue generated by digital catalogue distribution agreements, whether or not guarantees, advances or “lump sum payments” can be linked to individual master`s operations. “The most important question is, `Are you properly compensated under the terms of your specific agreement?` As early as March 2015, Judge Abrams ruled that in order to determine whether the streams were “distributions” or “broadcasts,” the parties had to review the agreements between Sony and the streaming outlets. How did they rank streaming? On Wednesday, New York Federal Judge Ronnie Abrams made a new statement in a major complaint. It finds that many of Sony Music`s licensing agreements with streaming outlets like Spotify, Rhapsody and Last.FM are ambiguous in how they describe the music being played. The result is that the case continues – perhaps at some point in court – and so far confidential contracts are being dissected in detail. Spotify, which has 15 million paid users and an additional 45 million who listen for free with advertising, was a frequent target to criticize the profitability behind digital music. The company says it pays an average of between 0.6 cents and 0.84 cents per stream, which many artists have lamented as unacceptable.

(The contract that was leaked — replaced by other deals — guarantees Sony a minimum of 0.225 cents per stream.) Last year, Taylor Swift pulled her music from Spotify because the company didn`t just want to keep it at its paid level.